Delay in filing appeals – Income Tax Department rapped by Bombay High Court
The High Court used to condone delays up to 200 days considering the administrative difficulties of the Department. Since December, 2005 the files are no longer sent to the Law Ministry and the Appeals have to be drafted in Mumbai itself. The High Court therefore found no reason as to why the same latitude should now be shown to condone long delay in preferring the Appeal if otherwise there is no sufficient cause. This exercise was also partly resorted to, considering that over one thousand and five hundred Notice of Motions were pending and in respect of Appeals right from 2001 onwards.
The High Court had to balance the right of the assessee in whose favour a right accrues. At the same time the Court also had to consider the adverse effect on the Revenue if these Appeals are dismissed. The Court did a statistical exercise and found that practically in every Appeal (about 2700 Appeals) there is a Motion for condonation of delay.
The main reasons for delay are
(a) the failure by the Officers of Revenue to process the files in time
(b) the time taken to draft the Appeals including by Advocates of the Department and
(c) Non-availability of stamp papers.
The High Court wondered why the file should not be processed within sixty days.
In the instant case before it, the Court ordered;-
(a) the delay of 202 days is condoned subject to the Appellants paying to the Respondents costs quantified at Rs.2,500 /-
(b) The said costs to be recovered from the officers responsible for the delay.
(c) We see no reason why the State should be burdened with the costs.
(d) It is essential that these observations are complied with and Officers responsible for delay in preferring Appeals, must be held accountable.
(e) A copy of this order be forwarded to the Chairman of Central Board of Direct Taxes for necessary action.
Now what is going to happen?
Does the High Court believe that appeals will now be filed on time? No chance! Most probably the copy of the High Court order that is marked to the Chairman will not be read by the Chairman. In the unlikely event of his reading it, he will mark it to some Member who will mark it to all CCs who will mark it all Commissioners, who will mark it to their subordinates and it will reach an Inspector who cannot mark it further.
As for the Rs. 2500/- to be paid by the officers responsible for the delay, 2500 officers will be identified and then it will be proved that not one of them could be personally held responsible. During that time, there was a visit by the Minister, a Parliamentary Committee, the Chairman, there were frequent power cuts, the Xerox machine was not working, the office building was shifted, the officer concerned was transferred and the new incumbent was on leave, the file was missing, clarifications were being sought from the Board, the standing Counsel was not co-operating and …………………………
And so the appeal could not be filed on time and nobody is really responsible for the lapse – file closed!