CIT v. Reliance Industries Ltd. (SC), www. itatonline.org

S. 260A : Appeal-High Court -Condonation of abnormal delay of 1371 days in removing office objections: High Court refused to condone delay and held that Dept must “set its own house in order by sacking and removing the delinquent and negligent officials or penalising them otherwise so as to subserve larger public interest”. The Supreme Court reversed this holding High Court ought to have condoned the delay and not dismissed the appeal- Dept to pay costs of Rs. 1 lakh shall be deposited with the Supreme Court Bar Association Lawyers’ Welfare Fund.

The appeal was filed by the Department(appellant herein) before the High Court against the judgment of the Income Tax Appellate Tribunal (ITAT). However, the said appeal was defective and the appellant took abnormal time of 1371 days in removing those defects. An application for condonation of delay was also filed. Since there was abnormal delay, the Registrar/Prothonotary & Senior Master of the Bombay High Court passed the Order dismissing the appeal for non-removal of office objections.The appellant herein took out a Notice of Motion against the aforesaid Order which has been rejected by the High Court vide the impugned Judgment.No doubt, there is a long delay in removing the objections, we are of the opinion that in a case like this the High Court should have condoned the delay in removing the office objections and heard the matter on merits.However, for the said delay caused by the appellant, the appellant shall pay cost of Rupees one lac within four weeks, which shall be deposited with the Supreme Court Bar Association Lawyers’ Welfare Fund.In view of the above, we condone the delay in removing office objections and remit the matter to the High Court for consideration of the case on merits. The appeal is allowed as indicated above. (CA.No 10774 of 2018, dt. 26.10.2018)