Court allows appeal, emphasizes substantial justice over technicalities. Dismissal set aside, case remanded for fresh decision.

The appeal was allowed for statistical purposes. The Court condoned the delay in filing the appeal, emphasizing the importance of substantial justice over technicalities. The dismissal of the appeal by the Ld. CIT(A) was set aside, and the case was remanded for a fresh decision on merits, stressing the need for proper opportunity to be heard. The Assessee was directed to cooperate fully in the proceedings, with a warning against future defaults. The Court underlined the significance of adhering to principles of natural justice and maintaining proper conduct in legal proceedings.

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Issues:
1. Delay in filing the appeal.
2. Dismissal of the appeal by Ld. CIT(A) on non-prosecution.

Analysis:

Issue 1: Delay in filing the appeal
The appeal was delayed by 124 days due to the failure of the assistant of the Chartered Accountant to deposit the appeal fee and file the appeal in the registry of ITAT, Amritsar. The Assessee provided a bonafide reason for the delay, stating it was unintentional. The law requires a Court to consider the conduct of the party and plausible cause for non-filing the statutory appeal within the time limit. Citing precedents like Collector, Land Acquisition v. Mst. Katiji and N. Balakrishnan v. M. Krishnamurthy, the Court emphasized that substantial justice should be preferred over technical considerations. The Court held that the length of delay is immaterial, and the acceptability of the explanation is the main criterion for condonation of delay.

Issue 2: Dismissal of the appeal by Ld. CIT(A) on non-prosecution
The Ld. CIT(A) dismissed the appeal as the Assessee did not attend the appellate proceedings or file any adjournment application, indicating lack of interest in pursuing the appeal. While acknowledging the principle that law assists those who are vigilant, the Court recognized that even vigilant litigants can make mistakes. Therefore, the Court set aside the impugned order and remanded the case back to the Ld. CIT(A) for a fresh decision on merits, emphasizing the need for proper and reasonable opportunity to be heard. The Assessee was directed to cooperate fully in the proceedings, with a warning that leniency would not be granted in case of default.

In conclusion, the appeal was allowed for statistical purposes, highlighting the importance of following principles of natural justice and ensuring proper conduct in legal proceedings.

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