Siva Industries and Holdings Ltd. Vs ACIT (Madras High Court)
Madras High Court has dismissed a petition filed by Siva Industries and Holdings Ltd. (SIHL) seeking condonation of a 2139-day delay in filing an appeal against the Income Tax Appellate Tribunal (ITAT) order related to the assessment year 2010-11. The court found the reasons provided by the petitioner to be unconvincing and lacking bonafide, ultimately ruling that negligence was the primary cause of the delay. The case underscores the judiciary’s strict stance on procedural delays, particularly in tax matters.
SIHL contended that it became aware of the ITAT’s erroneous dismissal of its appeal as a repetitive case only upon receiving another ITAT order in August 2022. Additionally, it claimed that an oversight by the litigation officer and financial distress due to insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) contributed to the delay. However, the court noted contradictions in these claims, pointing out that SIHL had already attempted to challenge the ITAT order through a miscellaneous petition in 2017, demonstrating prior awareness of the issue.
In rejecting the petition, the High Court relied on judicial precedents emphasizing that condonation of delay requires proof of diligence and genuine difficulties. The court cited Basawaraj v. Special Land Acquisition Officer (2013) 14 SCC 81, which held that “sufficient cause” must be genuine and not a mere pretext to cover negligence. The court also referred to Ajay Dabre v. Pyare Ram 2023 SCC Online SC 92, which reiterated that inordinate delays without valid reasons should not be condoned.
