High Court allows appeal under Section 260A, sets aside ITAT's orders for delay. Remands for fresh decision.

The High Court allowed the appeal under Section 260A of the Income Tax Act, setting aside the ITAT's orders due to the appellant's 'sufficient cause' for delay in filing. The matter was remanded back to the ITAT for a fresh decision within three months, emphasizing the right to appeal and ensuring the appellant is not remedyless. Compliance with rules was directed, and the parties were instructed to appear before the ITAT for further proceedings.

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Issues:
1. Delay in filing the appeal before the ITAT.
2. Dismissal of the miscellaneous appeal by ITAT due to delay.
3. Maintainability of writ petition against ITAT's order.
4. Dismissal of appellant's case by ITAT in absence.
5. Interpretation of Section 254(2) of the Income Tax Act, 1961.
6. Consideration of 'sufficient cause' for restoration of appeal.
7. Impact of Covid-19 period on limitation.
8. Amendment of Section 254(2) of the Act.

Analysis:
1. The appeal under Section 260A of the Income Tax Act, 1961 challenged the order of the ITAT dismissing a miscellaneous application for condoning delay in filing an appeal. The ITAT found a delay of 5 years, 6 months, and 23 days, leading to the dismissal of the appeal due to the appellant's lack of interest in pursuing it. Section 254(2) of the Act does not empower the Tribunal to condone such delays, rendering the miscellaneous appeal not maintainable.

2. The appellant, aggrieved by the ITAT's decision, approached the High Court through a writ petition, which was deemed not maintainable against the original ITAT order. However, the appellant was granted liberty to file the present income tax appeal under Section 260A of the Act, leading to the current proceedings before the High Court.

3. The appellant's argument centered on the mandate of Section 254(1) of the Act, emphasizing the disposal of appeals on merits even in the absence of the assessee. Additionally, the impact of the Covid-19 period on the limitation period was raised, along with various reasons such as the death of the lawyer, unavailability of documents, and miscommunication from the department, constituting 'sufficient cause' for restoration of the appeal.

4. The High Court, considering the precedents and the amended Section 254(2) of the Act, held that the right to file an appeal cannot be extinguished, ensuring the appellant is not left remedyless. Consequently, the impugned orders of the ITAT were set aside, and the present appeal was allowed, remanding the matter back to the ITAT for a fresh decision on the appeal bearing ITA No. 206/Ind/2013 on merits, with directions to expedite the process within three months.

5. The High Court directed the parties to appear before the ITAT on a specified date, effectively disposing of the appeal while ensuring compliance with the rules.

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