The Sindh High Court dealt with an Income Tax Reference where the taxpayer sought condonation of a substantial delay. The first appeal had reportedly been filed after approximately 621 days, followed by a further delay of about 566 days before the Tribunal. The taxpayer’s principal explanation was that the relevant order had not been served and, therefore, it had no knowledge of it.
The Tribunal, whose reasoning was upheld by the High Court, observed that once the plea of non-service failed, the plea of lack of knowledge also lost its foundation. Importantly, the taxpayer had continued accessing the IRIS portal, yet no convincing evidence was produced to explain why an order transmitted through the same electronic account remained unnoticed. Relying, inter alia, on PLD 2020 Sindh 136 and 2025 SCMR 930, the Court reiterated that limitation is not merely a procedural technicality and that delay must be supported by valid, cogent and credible reasons.
The reference was accordingly dismissed in limine. The decision carries an important compliance message: taxpayers should not merely file returns through IRIS but should also continuously monitor electronic notices, orders and communications. Once the statutory appeal period expires, even an argument that the underlying order was illegal or void may not, by itself, reopen the door of adjudication where sufficient cause for delay has not been established.