COMMISSIONER OF INCOME TAX -V vs. M/S PREMIER EXPLORATION SERVICES PVT.LTD

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ITA/753/2016HC DelhiDLHC01110653201625 November 2016Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed both the application for condonation of delay and the appeal. Regarding the delay, the Court found that the reasons provided by the Revenue, namely the re-organization of its counsel panel and the pendency of defective appeals, were not sufficient to condone the significant delay of 586 days. The Court stated that there was hardly any explanation for the delay. On the merits of the appeal, the Court observed that the findings of the ITAT concerning the exclusion of comparables were based solely on factual appreciation, which did not warrant interference by the High Court. Therefore, the appeal was dismissed on both procedural grounds (delay) and implicitly on merits due to the factual nature of the ITAT's findings.

What were the facts?

The Commissioner of Income Tax - V (the Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed belatedly by 586 days, with the filing date being 23.07.2014. The Revenue cited the re-organization of its panel of counsel and the pendency of a large number of defective appeals as reasons for the delay. The High Court noted that there was hardly any explanation for the delay and the reasons provided were not considered sufficient cause for condonation. The High Court also observed that the findings of the ITAT regarding the exclusion of comparables were based solely on factual appreciation.

What were the issues?

1. Whether the delay of 586 days in filing the appeal under Section 260A of the Income Tax Act, 1961, is liable to be condoned? (Question of law) The Revenue argued that the delay was caused by the re-organization of its panel of counsel and the pendency of a large number of defective appeals. The Revenue contended that these circumstances constituted sufficient cause for condoning the delay. The Respondent (assessee) did not appear to have made any specific arguments recorded in the judgment regarding the delay. However, the judgment implies that the assessee would have opposed the condonation of delay. The judgment also notes that the findings of the ITAT regarding the exclusion of comparables were based on factual appreciation, suggesting that the Revenue's appeal on merits was also weak.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 753/2016, CM APPL.40357/2016

COMMISSIONER OF INCOME TAX -V

..... Appellant Through: Mr. Vikrant A. Maheshwari, proxy for Mr. Dileep Shivpuri, Sr. Standing Counsel.

versus

M/S PREMIER EXPLORATION SERVICES PVT.LTD ..... Respondent Through: Mr. Ved Jain with Mr. Pranjal Srivastasva, Advocates.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE NAJMI WAZIRI

O R D E R %

25.11.2016 The present appeal under Section 260A of the Income Tax Act is highly belated - by 586 days. There is hardly any explanation for the delay. The appeal was filed on 23.07.2014 but appears to have been kept objected to. The Income Tax Department does not seem to have any clue about the filing of the appeal or the objections raised by the registry. It refers to the re-organisation of its panel of counsel and cites the pendency of large number of appeals marked defective. The reasons can hardly be considered sufficient cause to condone the delay.

Even otherwise, on the merits, the findings with regard to the exclusion of the comparables are based only on the factual appreciation; that does not call for any interference.

Both the application for condonation of delay and the appeal are, therefore, dismissed.

S. RAVINDRA BHAT, J

NOVEMBER 25, 2016/vikas/

NAJMI WAZIRI, J

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