Condonation of delay in revenue appeal rejected where tax effect was below CBDT circular limit and no sufficient cause was shown.

Delay in filing a revenue appeal was not condoned because the tax effect was below the limit prescribed by the CBDT circular. The Court held that the Department's later decision to file the appeal did not, by itself, amount to sufficient cause for the delay under section 5 of the Limitation Act, 1963. As the explanation failed to justify non-filing within time, the condonation application was rejected and the appeal dismissed.

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Issues: Whether delay in filing the revenue appeal could be condoned under section 5 of the Limitation Act, 1963 in view of the CBDT circular restricting appeals where the tax effect was below the prescribed limit.

Analysis: The Court found that the revenue involved in the matter was below the threshold prescribed by the circular. The later decision of the Department to file the appeal, by itself, did not constitute sufficient cause for not presenting the appeal within time. The explanation offered for the delay was therefore held not to satisfy the requirement of sufficient cause under section 5.

Conclusion: The application for condonation of delay was rejected, and the appeal was also dismissed.

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