ITO Vs Jayantilal Bhagwanchand (ITAT Bangalore)
Revenue filed an appeal against the order of CIT(A), but the appeal reached ITAT 100 days late. Department sought condonation of delay, claiming AO was busy with time-barring assessments, penalty work, scrutiny reports, grievance redressal & demand verification of four merged wards. They argued the delay was “unintentional” & due to heavy workload.
Assessee strongly objected, stating that such vague & routine excuses do not constitute “sufficient cause.”
Tribunal examined the legal position on condonation of delay:
Supreme Court in H. Guruswamy (2025):
Limitation rules cannot be diluted by overusing terms like “liberal approach” or “substantial justice.” Courts warned against using flexibility to destroy the law of limitation.
Supreme Court in Chief Post Master v. Living Media (348 ITR 7):
- Government departments have no special privilege.
- “Bureaucratic delay” or “file moving slowly” is not acceptable.
- Law of limitation binds all equally.
- Condonation of delay is an exception, not a right.
Supreme Court in Mool Chandra (2024):
It is not the length of delay, but the cause behind the delay that matters.
After applying these principles, ITAT found:
- Revenue’s reasons were generic & casual.
- There was no proof of bona fide effort.
- There was no specific event or unavoidable circumstance explaining the delay.
- It was simply negligence & administrative laxity, which is not sufficient cause.
- Therefore, ITAT refused to condone the delay & held the Revenue’s appeal barred by limitation. It was dismissed at the threshold.
- As the Revenue’s appeal was dismissed, Assessee’s cross-objection became infructuous & was also dismissed.
Final Outcome:
- Delay of 100 days NOT condoned
- Revenue’s appeal dismissed as time-barred
- Assessee’s cross-objection dismissed as infructuous
Key Takeaway:
- The Tribunal sent a clear message- Government cannot hide behind workload & procedural excuses.
- Limitation law applies equally to the tax department.
- Vague reasons = No condonation
FULL TEXT OF THE ORDER OF ITAT BANGALORE
