Court condones 342-day delay in filing Tax Appeal, grants bank one opportunity to pursue appeal on proposed questions of law.

The Court allowed the application, condoning the 342-day delay in filing the Tax Appeal challenging the ITAT order for Assessment Year 2007-08. The Court granted the cooperative bank one opportunity to pursue the appeal on proposed questions of law, emphasizing that the bank would not derive personal benefit. Costs of Rs. 50,000 were imposed on the bank, to be deposited with the Gujarat High Court Advocates Welfare Fund for assigning a 'pucca' number to the Tax Appeal for admission.

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Issues:
Delay in filing Tax Appeal challenging ITAT order for Assessment Year 2007-08.

Analysis:
The applicant sought condonation of a 342-day delay in filing a Tax Appeal against an ITAT order for the Assessment Year 2007-08. The delay was attributed to the retirement of the Branch Manager and the demise of the advocate handling the matter. The applicant contended that substantial justice should prevail over technical considerations, urging the Court to decide on merits rather than rejecting the appeal based on delay. The Revenue opposed the delay condonation, arguing that the reasons provided were insufficient and factually incorrect. They highlighted that the Tribunal had given the applicant an opportunity to represent their case before dismissing the appeal for non-prosecution.

The Court considered the arguments from both sides and deliberated on whether to condone the delay in filing the Tax Appeal. It noted the history of the case, including the assessment by the Assessing Officer and subsequent dismissal of appeals before the Commissioner of Income Tax (Appeals) and the Tribunal. Despite acknowledging some lethargy on the part of the bank in pursuing the matter, the Court decided to grant one opportunity to the applicant, a cooperative bank, to pursue the Tax Appeal on its proposed questions of law. The Court emphasized that the bank would not derive personal benefit from the appeal and that the delay should be condoned to hear the case on merits.

In conclusion, the Court allowed the application, condoning the 342-day delay in filing the Tax Appeal. However, the Court imposed costs on the applicant bank, directing them to deposit Rs. 50,000 with the Gujarat High Court Advocates Welfare Fund. Upon receipt of the deposit, the Court would assign a 'pucca' number to the Tax Appeal for admission.

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