1985 (6) TMI 51 - AT - Income Tax

Tribunal allows appeal due to delay, emphasizes need for sufficient cause in condonation

The Tribunal allowed the appeal, holding that the delay in filing the appeal was due to sufficient cause beyond the appellant's control. The Commissioner ... Appeal To AAC, Condition Of Delay In Filing Issues:- Appeal filed out of time before Commissioner (Appeals)- Condonation of delay for filing appeal- Maintainability of appeal to the Tribunal- Order passed by the Commissioner (Appeals)- Circumstances leading to delay in filing appeal- Consideration of sufficient cause for delay- Decision on condonation of delay- Merits of the case- Decision on the appealAnalysis:The appellant filed an appeal to the Tribunal objecting to the Commissioner (Appeals) order dismissing the appeal as out of time and refusing to condone the delay of 63 days in filing the appeal. The appellant-company received the demand notice and assessment order for the assessment year 1980-81 on 27-9-1983, with the last date for filing the appeal being 27-10-1983. The appeal was filed on 31-12-1983, resulting in a delay. The Commissioner (Appeals) refused to condone the delay, citing negligence on the part of the appellant. The appellant argued that the delay was due to circumstances beyond their control and requested condonation of the delay.The Departmental Representative opposed the appeal's maintainability before the Tribunal, contending that the order by the Commissioner (Appeals) was final under the Income-tax Act. The appellant's counsel argued against this, citing the Supreme Court's decision in Mela Ram & Sons v. CIT, which clarified that an appeal lies from an order dismissing an appeal as time-barred. The Tribunal found the appeal maintainable under section 253(1)(a) based on the Supreme Court's decision, rejecting the revenue's objections.On the merits, the Tribunal found the Commissioner (Appeals) erred in dismissing the appeal as time-barred. The managing director of the appellant explained the circumstances leading to the delay, including his absence due to an accident and the former accountant's negligence. The Tribunal accepted these reasons as sufficient cause for the delay and held that the Commissioner (Appeals) decision was incorrect. Consequently, the delay was condoned, the appeal was allowed, and the case was restored to the Commissioner (Appeals) for disposal on merits.In conclusion, the Tribunal allowed the appeal, dismissing the stay petition as infructuous. The decision emphasized the importance of considering the circumstances leading to the delay in filing the appeal and the requirement to establish sufficient cause for condonation of delay.