Court allows appeal citing genuine delay in filing, restores appeal for fresh consideration on merits

The High Court allowed the appeal, finding the appellant's plea for delay in filing the appeal before the Commissioner of Income Tax to be bona fide. The Court considered the appellant's consistent pursuit of appeals on the same issue and cited the elasticity of the term "sufficient cause" to serve justice. The appeal was restored for fresh consideration on merits, with no costs imposed.

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Issues:
1. Delay in filing appeal before the Commissioner of Income Tax
2. Treatment of income from letting out of warehouses as business income for assessment year 2007-2008

Analysis:
1. The appeal challenges the order of the Income Tax Appellate Tribunal regarding the delay in filing the appeal before the Commissioner of Income Tax for the assessment year 2007-2008. The appellant sought condonation of the delay of three years, two months, and three days. The Tribunal dismissed the appeal citing laches. The appellant argued that the issue was pending decision for previous assessment years, and the delay was due to the ongoing appeals. The High Court referred to Section 249(3) of the Act, allowing the Commissioner of Income Tax (Appeals) to admit an appeal after the prescribed period if sufficient cause is shown. The Court noted the appellant's diligence in pursuing the matter for earlier years and the rejection of rectification requests by the Assessing Officer based on previous decisions in favor of the appellant.

2. The Court observed that the appellant had consistently pursued appeals for earlier assessment years on the same issue of treating income from letting out of warehouses as business income. The appellant's plea was considered bona fide, and the Court found it to be a sufficient cause for the delay in filing the appeal. Citing the Supreme Court decision in The Collector, Land Acquisition v. Katiji, the Court emphasized the elasticity of the term "sufficient cause" to serve the ends of justice. Consequently, the Court allowed the appeal, answering the substantial questions of law in favor of the assessee. The appeal was restored to the file of the Commissioner of Income Tax (Appeals) for fresh consideration on merits, with no costs imposed.

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