Pre-deposit delay condoned where compliance was later made and dismissal for non-deposit was set aside

Delay in depositing a pre-deposit amount may be condoned where the amount was ultimately deposited and the surrounding circumstances satisfactorily explain the lapse. The appeal had been dismissed only for non-compliance with the pre-deposit condition, but the court accepted the explanation based on the earlier proceedings between the parties. On that basis, the delay was condoned, the dismissal order was set aside, and the matter was restored for hearing on merits.

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Issues: Whether the delay in depositing the pre-deposit amount could be condoned and the dismissal of the appeal for non-compliance with the pre-deposit condition could be set aside.

Analysis: The appeal had been dismissed solely for failure to make the pre-deposit within the stipulated period. The record showed that the amount directed by the Tribunal was subsequently deposited and the delay occurred in the circumstances arising from the earlier proceedings between the parties. In these facts, the Court found it to condone the delay and permit the appeal to be heard on merits.

Conclusion: The delay in depositing the pre-deposit amount was condoned and the order dismissing the appeal was set aside in favour of the assessee.

Ratio Decidendi: Where the pre-deposit is ultimately made and the delay in compliance is satisfactorily explained by the surrounding circumstances, the dismissal of the appeal for non-deposit may be set aside and the matter restored for adjudication on merits.

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