G.V.N.Fuels Ltd., Kolkata vs Department Of Income Tax
- CitationI.T.A No.563/Kol/2012
Ratio decidendi
The rule this decision rests on
Where the Revenue's explanation for a delay of thirty days consists only of a chain of internal file-movement dates, without any acceptable or plausible reason accounting for the delay at each stage, the delay cannot be condoned merely because a government department is the appellant; the law of limitation binds the Government as it binds every other litigant, and the Department cannot claim a separate period of limitation or rely on the inherent delays of bureaucratic procedure and impersonal machinery. A condonation of delay is an exception to be granted only where there is no gross negligence, deliberate inaction or lack of bona fides, and where the party seeking condonation offers a reasonable and cogent explanation; a liberal approach to condonation does not dispense with that requirement.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
I.T.A No.563/Kol/2012 Assessment Year: 2006-07 Deputy Commissioner of Income-tax, Vs. M/s G.V.N. Fuels Ltd. Circle-1, Kolkata (PAN: AAACG9200D) (Appellant) (Respondent)
Date of hearing: 19.05.2015 Date of pronouncement: 22.05.2015
For the Appellant: Shri K.L. Kanak, JCIT, Sr.DR For the Respondent: Shri S.M. Surana, Advocate
ORDER Per Shri Mahavir Singh, JM:
This appeal by revenue is arising out of order of CIT(A)-I, Kolkata vide Appeal No. 306/CIT(A)-1/Circle-1/08/09 dated 14.12.2011. Assessment was framed by DCIT, Cir-1, Kolkata u/s of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2006-07 vide his order 08.12.2008.
2. At the outset, it is noticed that the appeal is delayed by 30 days. As per records the revenue has received the order of CIT(A) on 12.01.2012 and appeal was filed before Tribunal on 11.04.2012. Thereby there is delay of 30 days. For this revenue has filed condonation petition with the following reasons in its application dated 10.04.2012:
"Filing of appeal in the case of M/s G.V.N. Fuels Ltd. PAN: AAACG9200D for the AY 2006-07 against the order of the Ld. CIT(Appeal)-1, Kolkata in appeal No. 306/CIT(A)- 1/Cir-1/08-09 is delayed for 29 (Twenty Nine) days due to the reasons stated below. Considering the fact of the case, the delay may kindly be condoned.
Last date:
12/03/2012 :
14/02/2012 : Appeal Scrutiny Report submitted to the office of JCIT, Range-1, Kol. 26/03/2012 : Appeal Scrutiny Report submitted by the office of JCIT, Range-1, Kol To the office of Ld. CIT, Kol-1, Kolkata. 03/04/2012 :Ld. CIT, Kol-1, Kolkata authorizes for filing of 2nd appeal before ITAT 04/04/2012 : Authorization for 2nd Appeal was communicated to this office 05/04/2012 : Holiday Mahavir Jayanti) 2 ITA No.563/K/2012 GVN Fuels Ltd. AY 2006-07
06/04/2012 : Holiday (Good Friday) 07/04/2012 : Holiday (Saturday) 08/04/2012 : Holiday (Sunday) 09/04/2012 : Preparation of papers 10/04/2012 : Submitted to the office of CIT, Kol-1, Kolkata for filing of appeal
Yours faithfully, Sd/- M.K. Biswas DCIT, Circle-1, Kolkata"
3. We find that the revenue has filed the condonation petition in a mechanical manner. The reasons cited are that the failure of machinery of revenue that there is delay at every stage from scrutiny report to the approval by CIT, Kol-1, while approving the appeal to be filed before Tribunal. In the absence of any plausible and acceptable explanation, we are posing a question why the delay is to be condoned mechanically merely because the revenue is a party before us. Though we are conscious of the fact that in a matter of condonation of delay when there was no gross negligence or deliberate inaction or lack of bonafide, a liberal concession has to be adopted to advance substantial justice, we are of the view that in the facts and circumstances, the revenue cannot take advantage of various earlier decisions. The claim on account of impersonal machinery and inherited bureaucratic methodology of making several notes cannot be accepted in view of the modern technologies being used and available. The law of limitation undoubtedly binds everybody including the Government. In view of the above facts of the case, now we will go through the case law cited by Ld. counsel for the assessee of Hon'ble Supreme Court in the case of Office of the Chief Post Master General & Anr. Vs. Living Media India Ltd. & Anr. In Civil Appeal No. 2474- 2475 of 2012 dated 24.02.2012, wherein it has been held as under:
"12) It is not in dispute that the persons(s) concerned were well aware or conversant with the issues involved including the prescribed period of limitation for taking up the mater by way of filing a special leave petition in this Court. They cannot claim that they have a separate period of limitation when the Department was possessed with competent persons familiar with court proceedings. In the absence of plausible and acceptable explanation, we are posing a question why the delay is to be condoned mechanically merely because the Government or a wing of the Government is a party before us. Though we are conscious of the fact that in a matter of condonation of delay when there was no gross negligence or deliberate inaction or lack of bonafide, a liberal concession has to be adopted to advance substantial justice, we are of the view 3 ITA No.563/K/2012 GVN Fuels Ltd. AY 2006-07
that in the facts and circumstances, the Department cannot take advantage of various earlier decisions. The claim on account of impersonal machinery and inherited bureaucratic methodology of making several notes cannot be accepted in view of the modern technologies being used and available. The law of limitation undoubtedly binds everybody including the Government.
13) In our view, it is the right time to inform all the government bodies, their agencies and instrumentalities that unless they have reasonable and acceptable explanation for the delay and there was bonafide effort, there is no need to accept the usual explanation that the file was kept pending for several months/years due to considerable degree of procedural red-tape in the process. The government departments are under a special obligation to ensure that they perform their duties with diligence and commitment. Condonation of delay is an exception and should not be used as an anticipated benefit for government departments. The law shelters everyone under the same light and should not be swirled for the benefit of a few.
Considering the fact that there was no proper explanation offered by the Department for the delay except mentioning of various dates, according to us, the Department has miserably failed to give any acceptable and cogent reasons sufficient to condone such a huge delay. Accordingly, the appeals are liable to be dismissed on the ground of delay."
4. The facts are exactly identical and similar to the decision of Hon'ble Supreme Court in the case of Office of the Chief Post Master General & Anr. Vs. Living Media India Ltd. & Anr., supra wherein the government machinery has worked in a particular fashion and in all the delay there is no explanation whatsoever. As such there is no reasoning and Ld. Counsel for the assessee has strongly objected to the Condonation of delay. In view of the above, we refuse to condone the delay and decline to admit the appeal. Appeal of revenue is dismissed as not admitted.
5. In the result, appeal of revenue is dismissed.
6. Order is pronounced in the open court on 22.05.2015.
Sd/- Sd/- (P. K. Bansal) (Mahavir Singh) Accountant Member Judicial Member
Dated : 22nd May, 2015
Jd.(Sr.P.S.) 4 ITA No.563/K/2012 GVN Fuels Ltd. AY 2006-07
Copy of the order forwarded to: 1. APPELLANT - DCIT Circle-1, Kolkata
2 Respondent - M/s. G.V.N. Fuels Ltd., 109/1, Girish Ghosh Road, Belur Math, Howrah - 711202, West Bengal 3. The CIT(A), Kolkata 4. CIT, Kolkata 5. DR, Kolkata Benches, Kolkata
/True Copy, By order,
Asstt. Registrar.
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