PCIT Vs JS Capital LLC (Bombay High Court)
Summary: The Bombay High Court allowed the Revenue’s application seeking condonation of 156 days’ delay in filing an appeal under Section 260A of the Income Tax Act, 1961 against the ITAT order dated 26.02.2024.
The ITAT order was received by the Income Tax (International Taxation) Department on 10.05.2024. The scrutiny report was submitted by the CIT (International Taxation) to the Chief Commissioner on 30.08.2024. After consideration and obtaining clarifications, approval for filing the High Court appeal was granted on 30.09.2024. Relevant records were thereafter collected and forwarded to panel counsel, the appeal memorandum was settled and received on 14.01.2025, final approval was obtained on 22.01.2025, and the appeal was filed on 10.02.2025.
The assessee opposed condonation, contending that limitation had expired on 04.09.2024 and that the departmental chronology did not constitute sufficient cause. It also relied upon CBDT Instruction No. 7/2011 dated 24.05.2011 and argued that the application appeared cyclostyled or stereotyped because certain dates had been subsequently inserted by hand.
The High Court rejected these objections. It held that “sufficient cause” cannot be determined by a rigid or pedantic formula. The material consideration is whether the explanation demonstrates a bona fide reason preventing filing within limitation. The length of delay is not by itself determinative; the sufficiency of the explanation and bona fides of the conduct are relevant.
