2014 (8) TMI 593 - HC - Income Tax

Appeal Dismissed: Importance of 'Sufficient Cause' for Delay in Tax Appeals

M/s. Amolak Singh Kumar & Sons Versus Commissioner of Income Tax-2, Jalandhar

The High Court dismissed the appeal under Section 260A of the Income Tax Act due to a delay of 715 days, as the reasons provided by the appellant, ... Condonation of delay – Delay of 715 days - whether there was sufficient cause for condonation of delay of 715 days in filing the appeal before the Tribunal which was belated – Held that:- The question regarding whether there is sufficient cause or not depends upon each case and primarily is a question of fact to be considered taking into totality of events which had taken place in a particular case - after appreciating the matter it cannot be said that there was sufficient cause for condonation of delay - CIT(A) had decided the matter on 25.2.2010 and a copy thereof was sent to the assessee - the appeal before the Tribunal was required to be filed within the stipulated period of limitation of sixty days - But the assessee filed the appeal before the Tribunal on 23.4.2012, after a delay of 715 days - The plea of the appellant as mentioned above relating to death of his father and mother in 2006 and 2008 respectively was much before the decision of the appeal by the CIT(A) on 25.2.2010 and, thus, would not satisfy the test of sufficient cause - The explanation is bereft of details of delay caused in filing the appeal – thus, the Tribunal has rightly rejected the appeal keeping in view the totality of facts and circumstances of the present case – Decided against Assessee. Issues:1. Condonation of delay in filing an appeal before the Tribunal under Section 260A of the Income Tax Act, 1961.2. Application of the principle of 'sufficient cause' under Section 5 of the Limitation Act, 1963 for condonation of delay in filing the appeal.3. Assessment of whether the delay in filing the appeal was unintentional and beyond the control of the appellant.Issue 1: Condonation of Delay in Filing AppealThe appellant filed an appeal under Section 260A of the Income Tax Act against the order passed by the Income Tax Appellate Tribunal. The primary question was whether there was sufficient cause to condone the delay of 715 days in filing the appeal before the Tribunal.Issue 2: Application of 'Sufficient Cause' PrincipleThe court examined the legal position regarding condonation of delay under Section 5 of the Limitation Act, 1963. Referring to previous judgments, the court emphasized that the law of limitation aims to preserve legal remedies within a specified period and that the courts have the discretion to condone delay if sufficient cause is shown. The term 'sufficient cause' is flexible and requires a case-by-case analysis, with no fixed standard for determining it.Issue 3: Assessment of Unintentional DelayThe appellant argued that the delay in filing the appeal was due to the death of family members, medical treatment, and a misunderstanding with the counsel. However, the court found no merit in the appeal. It concluded that the reasons provided did not constitute sufficient cause for condonation of the delay. The court highlighted that the explanation lacked details on the delay and that the circumstances cited by the appellant occurred before the decision by the Commissioner of Income Tax (Appeals), thus not meeting the test of sufficient cause.In summary, the High Court dismissed the appeal as it found no substantial question of law. The court emphasized the importance of demonstrating sufficient cause for condonation of delay and highlighted the need for a detailed explanation of the circumstances leading to the delay in filing the appeal. The judgment underscored the individualistic nature of assessing sufficient cause and the need for a balance between substantial justice and technical considerations in such cases.