Court orders Appellate Tribunal to condone delay in filing appeal under Income-tax Act; "reasonable cause" found

The court directed the Appellate Tribunal to condone the delay in filing an appeal under section 254 of the Income-tax Act, as it found a "reasonable cause" existed for the delay due to a dispute between partners resulting in delayed receipt of the necessary order. The court allowed the writ petition, quashing the Tribunal's order and instructing it to accept the appeal if in order and proceed with the case as per the law, with no costs imposed.

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Issues:
Delay in filing appeal under section 254 of the Income-tax Act.

Analysis:
The writ petition was filed seeking the issuance of a writ of certiorarified mandamus to quash the order of the Appellate Tribunal refusing to condone a 25-day delay in filing an appeal under section 254 of the Income-tax Act. The Tribunal had dismissed the application despite the reasons provided by the assessee, citing no reasonable cause for the delay. The reason for the delay was due to a dispute between partners, resulting in the delayed receipt of the order necessary for filing the appeal. The expulsion order of the partner was presented as evidence to support the delay. The court, after reviewing the reasons provided, concluded that a "reasonable cause" existed for the delay under section 253(5). As a result, the court directed the Tribunal to condone the delay, accept the appeal if in order, and proceed with the case in accordance with the law. The writ petition was allowed with no costs imposed.

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