PRINCIPAL COMMISSIONER OF INCOME TAX- 09, vs. M/S. VERTEX CUSTOMER SERVICES INDIA PVT. LTD.,

PDF · subscribers
ITA/172/2018HC DelhiDLHC01443509201712 February 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the application for condonation of delay, holding that the explanation provided by the Revenue for the 489-day delay was unconvincing and did not constitute a "sufficient cause." The Court noted that demonetisation occurred after a significant portion of the delay had already accrued. Furthermore, even on the merits, the Court was of the opinion that the issue urged by the Revenue regarding the exclusion of four comparables by the ITAT ought not to be interfered with. The Court found the ITAT's reasoning with respect to two comparables to be justified and concluded that the ITAT's findings were neither unreasonable nor perverse. Consequently, the appeal filed by the Revenue was also dismissed.

What were the facts?

The Principal Commissioner of Income Tax-09 (the Revenue) filed an appeal before the Delhi High Court against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed with a delay of 489 days. The Revenue attributed this delay to staff unavailability due to demonetisation and file movement caused by transfers. The ITAT's order was passed on April 22, 2016, and the appeal was filed on September 19, 2017. Demonetisation occurred on November 8, 2016. The High Court considered the explanation for the delay and the merits of the issue raised by the Revenue concerning the exclusion of four comparable companies by the ITAT.

What were the issues?

1. Whether the delay in filing the appeal by 489 days is liable to be condoned on the grounds of staff unavailability due to demonetisation and transfers. Assessee's Arguments: No arguments were recorded for the assessee as none appeared. Revenue's Arguments: The Revenue argued that the delay in filing the appeal was caused by staff unavailability due to demonetisation and file movement due to transfers, which constituted sufficient cause for condonation of delay.

AI-generated summary — verify with the full judgment below

$~30 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 172/2018

PRINCIPAL COMMISSIONER OF INCOME TAX- 09

..... Appellant Through: Mr. Zoheb Hossain, Sr. Standing Counsel for Revenue.

versus

M/S. VERTEX CUSTOMER SERVICES INDIA PVT. LTD. ..... Respondent

Through: None.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

12.02.2018

CM APPL.5358/2018 (delay in re-filing)

For the reasons stated in the application, delay in re-filing the appeal is condoned.

The application stands disposed of. ITA 172/2018 & CM APPL.5357/2018 (delay in filing)

The appeal is highly belated – by 489 days. The explanation given for the delay is that of unavailability of sufficient staff on account of demonetisation and also that file movement on account of transfers, etc. Instant appeal was filed on 19.09.2017; the ITAT’s order made on 22.04.2016. The demonetisation occurred ITA No.172/2018

Page 1 of 2

on 08.09.2016. Considering all these facts, the explanation given is unconvincing and cannot be called as “sufficient cause”. Even otherwise, the Court is of the opinion that the issue urged with respect to exclusion of four comparables, ought not to be interfered with. With respect to two comparables plainly, the ITAT’s reasoning is justified. In any case, the ITAT’s findings are neither unreasonable nor perverse.

The application for condonation of delay is, therefore, dismissed. Consequently, the appeal too is dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J FEBRUARY 12, 2018 kks

ITA No.172/2018

Page 2 of 2

Recent GST High Court judgments

Search GST case law →