Income Tax Dept Vs Gregory Lewis (Bombay High Court)
Conclusion: Delay of 447 days by the Income Tax Department in filing an appeal was condoned against the acquittal of an accused in a tax evasion case, observing that the delay was caused by a bona fide mistake and disruptions during the COVID-19 pandemic.
Held: The case arose from a criminal complaint filed by the Income Tax Department against Gregory Lewis under Sections 276C (1) and 277 alleging willful attempt to evade tax and making false statements in verification. The Chief Judicial Magistrate, Panaji, had acquitted the accused on 29 April 2019. Department filed an application seeking condonation of delay in filing its appeal against the acquittal. Department argued that the delay was attributed to (i) a bona fide mistake by the Special Public Prosecutor who believed he had already submitted his opinion, (ii) administrative dislocation due to jurisdictional changes following the implementation of the faceless assessment scheme, and (iii) restricted office functioning during the COVID-19 pandemic. Respondent opposed the application, arguing that the explanation was vague and insufficient, relying on State of Madhya Pradesh v. Bherulal (2020) 10 SCC 654, which warned against routine condonation of government delays. It was held that the delay in this case resulted from a bona fide mistake by the Special Public Prosecutor and administrative confusion caused by jurisdictional changes, compounded by the impact of the pandemic. The court pointed out that after receiving directions from the Principal Commissioner on 9 September 2020, the Department acted immediately and filed the appeal on 17 September 2020. The court observed that refusing to condone the delay would prevent the matter from being decided on merits and could result in injustice. It explained that courts should adopt a pragmatic approach in such cases, as laid down in Collector (Land Acquisition) v. Mst. Katiji (1987) 2 SCC 107, and prioritize substantial justice over technicalities. Delay of 447 days condoned, and the Registry was directed to register the appeal.
