Facts of the Case

The assessee filed an appeal before the Income Tax Appellate Tribunal against the order of the Commissioner of Income Tax (Appeals). However, the appeal was filed with a delay beyond the prescribed limitation period. The assessee submitted a petition seeking condonation of delay along with an affidavit explaining the reasons for the delay.

Issues Involved

Whether the delay in filing the appeal should be condoned when the assessee demonstrates sufficient cause for not filing the appeal within the prescribed time.

Petitioner’s Arguments (Assessee)

The assessee contended that the delay was neither intentional nor due to negligence but occurred because of bona fide circumstances beyond control. It was argued that the assessee has a good case on merits and denial of hearing due to technical delay would cause grave injustice. Therefore, the delay deserved to be condoned in the interest of substantial justice.

Respondent’s Arguments (Department)

The Departmental Representative relied on the orders of the lower authorities but did not strongly oppose the condonation if the Tribunal was satisfied with the explanation provided by the assessee.

Court Order / Findings

The Tribunal observed that the expression “sufficient cause” should receive a liberal construction to advance substantial justice. Considering the explanation furnished and the absence of mala fide intention, the Tribunal held that the delay was reasonably explained. Accordingly, the delay in filing the appeal was condoned and the appeal was admitted for adjudication on merits.

Important Clarification

Procedural delays should not defeat substantive rights when the assessee demonstrates bona fide reasons. Courts and tribunals generally adopt a liberal approach in condoning delays to ensure that matters are decided on merits rather than technical grounds

Link to download the order –

https://itat.gov.in/public/files/upload/1628227729-91.pdf

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