Condonation of delay must be decided on evidence and hearing, then the appeal must be remitted for merits adjudication.

Condonation of delay must be considered on evidence and after affording a reasonable opportunity of hearing; dismissal in limine for delay without inquiring into the truthfulness of the condonation petition and without deciding condonation is improper. The appellate authority is required to decide the condonation application and, if condonation is granted, proceed to adjudicate the appeal on merits; where no adequate inquiry or hearing was held the appropriate remedy is to set aside the order and remit the matter for fresh consideration, with a final opportunity to produce evidence to substantiate delay.

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Issues: Whether the delay in filing the appeal before the CIT(A) should be condoned under Section 249(3) of the Income-tax Act, 1961 and whether the CIT(A) was competent to dismiss the appeal in limine on the ground of delay without inquiring into and deciding condonation and without proceeding to examine merits under Section 250(4) & (6) of the Income-tax Act, 1961.

Analysis: The Tribunal examined whether the assessee had made sufficient efforts and could substantiate the reasons for delay and whether the first appellate authority complied with the statutory mandate to consider condonation under Section 249(3) and to proceed to decide merits under Section 250(4) & (6). The Tribunal noted the assessee's assertion of dependency on a non-responsive professional, the request for opportunity to produce evidence, and that the CIT(A) dismissed the appeal in limine without conducting the required inquiry into the truthfulness of the condonation petition or affording adequate hearing. The Tribunal relied on the principle that an appellate authority must consider and decide an application for condonation of delay on evidence and afford a reasonable opportunity of hearing before dismissing an appeal in limine, and that where such inquiry has not been conducted the appropriate remedy is to set aside the order and remit the matter for fresh consideration.

Conclusion: The CIT(A)'s order is set aside and the assessee is granted one final opportunity to place evidence before the CIT(A) to substantiate the condonation of delay; the CIT(A) shall decide the condonation under Section 249(3) and thereafter decide the appeal on merits in terms of Section 250(4) & (6). The grounds of appeal are allowed for statistical purposes and the appeal is allowed for statistical purposes in favour of the assessee.

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