High Court should have condoned the delay and heard the matter on merits in case of a long delay in removing the objection.

The Department filed an appeal before the High Court against the judgment of the ITAT. However, the appeal was defective and the appellant took an abnormally long time to rectify the defects. The High Court dismissed the appeal due to the non-removal of office objections. The appellant filed a motion against this decision, but it was rejected by the High Court. The Supreme Court granted leave to appeal and opined that the High Court should have condoned the delay in removing the objections and heard the matter on its merits. However, the appellant was ordered to pay a cost of Rs. one lac within four weeks as a result of the delay caused. The Supreme Court remitted the matter back to the High Court for consideration on merits. The appeal was allowed by the Supreme Court. The judgment was delivered on October 26, 2018, by Justices A.K. Sikri and Ashok Bhushan in New Delhi.

Leave granted.

The appeal was filed by the Department (appellant herein) before the High Court against the judgment of the Income Tax Appellate Tribunal (ITAT).

However, the said appeal was defective and the appellant took abnormal time of 1371 days in removing those defects. An application for condonation of

delay was also filed. Since there was abnormal delay, the Registrar/ Prothonotary & Senior Master of the Bombay High Court passed the Order dismissing the appeal for non-removal of office objections. The

appellant herein took out a Notice of Motion against the aforesaid Order which has been rejected by the High Court vide the impugned Judgment.

No doubt, there is a long delay in removing the objections, we are of the opinion that in a case like this the High Court should have condoned the

delay in removing the office objections and heard the matter on merits.

However, for the said delay caused by the appellant, the appellant shall pay cost of Rupees one lac within four weeks, which shall be deposited with the Supreme Court Bar Association Lawyers' Welfare Fund.

In view of the above, we condone the delay in removing office objections and remit the matter to the High Court for consideration of the case on

merits.

The appeal is allowed as indicated above.

(A.K. SIKRI)

(ASHOK BHUSHAN)

NEW DELHI,

OCTOBER 26, 2018

Leave granted.

The appeal stands allowed in terms of the signed order.

Pending applications, if any, stand disposed of.

(SUSHIL KUMAR RAKHEJA) (RAJINDER KAUR)

AR-CUM-PS BRANCH OFFICER

(Signed order is placed on the file.)