Bona fide delay in tax appeal condoned where rectification application was pending and merits could be heard

Delay in filing a tax appeal was condoned because the assessee had filed a rectification application that remained pending, and the explanation for the late appeal was accepted as bona fide rather than mala fide. The HC also noted that the tax demand had already been deposited and that the department would suffer no serious prejudice if the matter were examined on merits. Applying the principle that substantial justice should prevail over technical objections, the appeal was directed to proceed on merits.

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Issues: Whether the delay in filing the tax appeal deserved to be condoned on the basis that a rectification application had been pending and the delay was occasioned bona fide.

Analysis: The appeal was filed after a substantial lapse of time, but the record showed that an application for rectification had in fact been made and remained pending. The department also admitted the filing of that application. In these circumstances, the explanation for the delay was found to be bona fide and not actuated by mala fides. The Court further noted that the tax demand had already been deposited and that no serious prejudice would be caused to the department if the matter were examined on merits. The principle that substantial justice should prevail over technical objections was applied.

Conclusion: The delay was condoned and the appeal was to be heard on merits.

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