Condonation of delay may be granted when sufficient cause is shown and the appeal can proceed on merits.

Delay in filing an appeal may be condoned where the order was not directly served on the assessee and the explanation shows sufficient cause, including circumstances such as service on a tax consultant rather than an authorised representative and illness affecting the handling of the matter. The appeal was filed within one year of the assessee receiving the order, and the appellate authority was expected to examine condonation on those facts. In these peculiar circumstances, the delay was treated as adequately explained, while the assessee could still be put to terms for lack of diligence, and the appeal was to be heard on merits if the imposed conditions were satisfied.

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Issues: Whether the delay in filing the appeal should be condoned and the appeal heard on merits.

Analysis: The order under challenge was not shown to have been directly served on the assessee. The person on whom service was effected was accepted as a tax consultant rather than an authorised representative, and the assessee's explanation for the delay was supported by the circumstances stated regarding the consultants' illness. The appeal was filed within one year from the date of receipt of the order by the assessee, and the appellate authority was required to consider whether sufficient cause existed for condonation. In the peculiar facts, the delay was found to be sufficiently explained, though the assessee was held liable to be put to terms for lack of diligence.

Conclusion: The delay was liable to be condoned, subject to payment of the quantified amount and costs, and the appeal was directed to be decided on merits if the conditions were complied with.

Final Conclusion: The revision was allowed with conditional relief in favour of the assessee, enabling consideration of the appeal on merits upon compliance with the imposed terms.

Ratio Decidendi: Where an appeal is filed within the outer statutory period and the explanation for delay shows sufficient cause, the delay may be condoned, and appropriate terms may be imposed while preserving the right to a decision on merits.

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