Delay condonation: Tribunal ignored the explained one-day delay after the statutory period, discretion held improperly exercised.

Whether the Appellate Tribunal exercised judicial discretion in refusing to condone a one day delay after expiry of the statutory 60 day limitation was the central issue; the Tribunal failed to address the narrow question whether the single day's delay had been satisfactorily explained and ignored the appellant's credible explanation about erroneous computation of months. The court found that the Tribunal did not base its refusal on relevant considerations and therefore exercised discretion improperly; relief was granted to the assessee and costs awarded to counsel.

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Issues: Whether the Appellate Tribunal exercised its discretion in a judicial manner in refusing to excuse the one day's delay in presenting the appeals under section 66(2) of the Income-tax Act, 1922.

Analysis: The question required examination of whether the Tribunal based its refusal to condone the delay on relevant considerations, including the statutory limitation period of 60 days and the appellant's explanation that incorrect advice as to computation of months caused the delay. The Tribunal's statement in the case and its failure to address whether the single day's delay after expiry of the 60-day period had been satisfactorily explained were material. The Tribunal's approach ignored the specific direction that only the single day's delay needed explanation and did not engage with the appellant's credible explanation regarding computation of the period.

Conclusion: The Tribunal did not exercise its discretion judicially in refusing to excuse the delay; the discretion was exercised improperly. The question is answered in the negative and in favour of the assessee. Costs awarded to the assessee (counsel fee Rs. 250).

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