Facts of the Case

The Income Tax Department filed multiple appeals before the Delhi High Court against the order of the Income Tax Appellate Tribunal dated 21.03.2016. However, there was a delay of 86 days in filing the appeals. Along with the appeals, applications seeking condonation of delay were filed.

The only explanation furnished by the Department was that after due deliberations at various administrative levels, the competent authority decided to file the appeals and approval was granted on 30.09.2016. The Court examined whether such explanation constituted sufficient cause for condonation of delay.

 Issues Involved


  1. Whether the Income Tax Department had shown sufficient cause for condonation of delay of 86 days?
  2. Whether administrative approval and internal departmental deliberations can constitute valid grounds for condonation of delay?
  3. Whether every day’s delay is required to be properly explained under settled law?

 Petitioner’s Arguments (Revenue Department)


  • The Revenue submitted that the delay occurred due to internal departmental deliberations and procedural approvals.
  • It was argued that approval from the competent authority was obtained on 30.09.2016 after due consideration.
  • Counsel for the Revenue sought one further opportunity to provide a better explanation for the delay.

 Respondent’s Arguments (Assessee)


  • The respondent opposed the condonation application on the ground that the explanation was vague and insufficient.
  • It was contended that settled legal principles require a day-to-day explanation of delay.
  • Mere internal movement of files and departmental decision-making cannot be treated as sufficient cause under law.

 Court Findings / Observations


The Delhi High Court held that the explanation given by the Revenue was wholly inadequate and did not satisfy the legal requirement for condonation of delay.

The Court observed that there are numerous judgments of the Supreme Court and High Courts establishing that every day’s delay must be explained. Mere internal deliberations and approval processes cannot automatically justify delay.

The Court further noted that the Department was fully aware of this legal requirement for decades and yet filed the applications casually without proper particulars. Therefore, no further indulgence was warranted.

 Court Order / Final Decision


The Delhi High Court refused to condone the delay of 86 days in filing the appeals. All applications seeking condonation of delay were dismissed. Consequently, all connected appeals filed by the Revenue were also dismissed.

 Important Clarification

This judgment reiterates an important procedural principle that:

  • Government departments are not entitled to special treatment in limitation matters.
  • Administrative procedures and internal approvals do not automatically amount to “sufficient cause.”
  • Courts require proper and specific explanation for each day of delay.
  • Casual applications for condonation of delay are liable to be rejected even in tax litigation.

This decision strengthens judicial discipline on limitation compliance in tax appeals.

Sections Involved

  • Section 260A of the Income Tax Act, 1961 – Appeal to High Court
  • Limitation Law Principles relating to condonation of delay
  • Judicial principles governing “sufficient cause” for delay condonation

 Link to download the order –


https://delhihighcourt.nic.in/app/case_number_pdf/2017:DHC:8726-DB/SMD18042017ITA9162016_130336.pdf

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