High Court allows appeal under Income Tax Act, 1961, for AY 1990-91, condones delay, directs appeal on merits.

The High Court allowed the appeal under section 260(1) of the Income Tax Act, 1961, overturning the rejection of the application for condonation of delay in filing the appeal for assessment year 1990-91. The Court held that the delay should be condoned as the appellant was not responsible for it and would not benefit from the delay. The Tribunal's order was set aside, and the appeal was directed to be decided on its merits, ruling in favor of the appellant.

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Issues Involved: Appeal u/s 260(1) of the Income Tax Act, 1961 against rejection of application u/s 5 of the Limitation Act for condonation of delay in filing the appeal for assessment year 1990-91.

Summary:
The appeal was filed against the judgment and order of the Income Tax Appellate Tribunal, Amritsar Camp at Meerut, which had rejected the application seeking condonation of delay in filing the appeal. The appellant had handed over the appeal papers to an advocate, but due to financial constraints, the fee was not paid, resulting in the advocate not filing the appeal. Upon realizing this, a new counsel was engaged who filed the appeal along with an application u/s 5 of the Limitation Act. Both the party's affidavit and the counsel's affidavit remained uncontroverted. It was noted that the appellant would not gain anything from the delay in filing the appeal.

The High Court opined that the delay should have been condoned, as the appellant was not at fault and stood to gain nothing from the delay. Therefore, the Court set aside the Tribunal's order and directed it to decide the appeal on merits. The appeal was allowed, succeeding in favor of the appellant.

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