M/S GAURAV CONSTRUCTION CO., KORBA, KORBA vs. ITO-1, KORBA, KORBA

I have heard the rival contentions, analyzed the facts and circumstances in this case. The Ld. CIT(Appeals)/NFAC had dismissed the appeal since there has been inordinate delay of 9 years 233 days in filing the appeal by the assessee before the said authority. The Ld. Counsel for the assessee submitted that they have given their submissions before the Ld. CIT(Appeals)/NFAC and accordingly, the said authority should not have dismissed the appeal on the ground of delay itself. However, the fact of the matter is that the assessee cannot take advantage of its own wrong. Nothing has been brought on record to suggest any sufficient cause for condonation of such delay before the First Appellate Authority nor it has been established that there was no negligence on the part of the assessee for non-compliance regarding law of limitation. That the judicial principles dictates that such inordinate delay combined with negligence and lack of sufficiency of cause for the delay results in dismissal of the case on the ground of limitation itself.

That the Hon’ble Apex Court in certain judgments has held that justice oriented approach has to be considered while condoning the delay

In the present case, no evidence has been furnished for establishing such sufficient cause for such huge delay of 9 years 233 days. That at the same time, no materials were brought on record to even suggest that the assessee was vigilant enough and that the delay had occurred due to circumstances beyond the control of the assessee. That when there is huge delay of 9 years 233 days in filing appeal before the Ld. CIT(Appeals)/NFAC, it is a clear case of negligency of the assessee. That even within the connotation of ‘justice oriented approach’, it would be unfair towards Revenue to condone such delay and provide relief to the assessee on the ground of limitation where the assessee itself was negligent to comply with law of limitation. The scales of justice are always to be balanced and on a careful examination of the facts and circumstances of the present case, the action of the Ld. CIT(Appeals)/NFAC for not condoning such huge, unreasonable and inordinate delay in absence of bonafideness of the assessee falls within the umbrella of justice oriented approach so to clearly spell out that in order to balance scales of justice negligent assessee shall not be allowed to take advantage of its own wrong.

A. Krishnaish since deceased by Lrs, CIVIL APPEAL No. 317 of 2025 (Petition for Special Leave to Appeal (C) No.9719/2020), dated 08.01.2025 has held that while considering the plea for condonation of delay, the court must not start with the merits of the main matter. The court owes a duty to first ascertain the bona fides of the explanation offered by the party seeking condonation. It had further observed that once it is held that a party has lost his right to have the matter considered on merits because of his own inaction for long, it cannot be presumed to be non-deliberate delay and in such circumstances of the case, he cannot be heard to plead that the substantial justice deserves to be preferred as against the technical considerations.

That any prudent person being aggrieved by the order of the A.O would have immediately filed the appeal before the Ld. CIT(Appeals)/NFAC. In this case, however, the assessee chooses to wait for nearly 10 years and then had filed the appeal before the Ld. CIT(Appeals)/NFAC which is a clear case of gross negligence while ascertaining rights and liabilities through the process of law. In view of the aforesaid facts and above referred judicial pronouncements, finding no infirmity with the view taken by the Ld. CIT(Appeals)/NFAC, I uphold the same.

In the result, appeal of the assessee is dismissed. Order pronounced in open court on 16th day of February, 2026.