Tribunal Grants Appeal on Delay, Emphasizes Liberal Approach to Condoning Delay

The Tribunal allowed the appeal for statistical purposes only, condoned the delay of 5 months and 6 days in filing the appeal, and restored the file to the CIT(A) for fresh adjudication on merit and in accordance with the law. The Tribunal stressed the importance of a liberal approach in condoning delay to ensure substantial justice, highlighting that every remedy should be kept alive and delay can be excused for valid reasons supported by evidence.

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Issues involved: Delay in filing appeal, condonation of delay, substantial justice, liberal approach in condonation of delay.

Delay in filing appeal: The assessee was aggrieved by the impugned order not condoning the delay of 5 months and 6 days in filing the appeal and not deciding the appeal on merit. The order of the Assessing Officer was passed u/s 143(3) of the Act on 31.12.2009, and the appeal was filed after the delay along with an application for condonation of delay.

Condonation of delay: The Tribunal considered whether the delay should be condoned, noting that the delay was caused due to the fault of the earlier Chartered Accountant. The Tribunal referred to the power to condone delay u/s 5 of the Indian Limitation Act, 1963, enabling courts to do "substantial justice" by disposing of matters on merits. The Tribunal emphasized the need for a liberal approach in condoning delay, stating that the interest of both the assessee and the revenue cannot be ignored.

Substantial justice and liberal approach: The Tribunal highlighted that a pragmatic view should be taken in matters of condonation of delay, as refusing to condone delay in a meritorious matter may defeat the cause of substantial justice. The Tribunal emphasized that the law of limitation aims to keep every remedy alive and that delay can be condoned for sufficient and good reasons supported by proper evidence. The Tribunal concluded that condoning the delay would allow the appeal to be decided on merit after providing the assessee with an opportunity to be heard and furnish evidence.

Decision: The Tribunal allowed the appeal for statistical purposes only, condoned the delay, and restored the file to the CIT(A) for fresh adjudication on merit and in accordance with the law. The Tribunal emphasized the importance of providing adequate opportunity for hearing to litigants and upheld the principle of substantial justice in the decision-making process.

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