Condonation of delay for fee deposit upheld where bona fide misapprehension and operational impracticability constituted sufficient cause.

The issue concerns condonation of delay in depositing the prescribed appeal fee where the appellant filed the memorandum on time but relied on an Assistant Registrar communication creating a bona fide misapprehension of exemption. The court treated the three-day interval between correction and payment and operational constraints of a co-operative society as sufficient cause; it examined whether the statutory discretionary power to condone delay was exercised judicially and concluded the Tribunal erred in refusing relief. Outcome: delay condoned and appeal to be adjudicated on merits.

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Issues: Whether the Income-tax Appellate Tribunal was justified in refusing to condone the delay in depositing the prescribed fee for the appeal.

Analysis: The assessee presented the memorandum of appeal within time but without the requisite chalan for the prescribed fee, relying on a communication from the Assistant Registrar of Co-operative Societies indicating exemption. The communication created a bona fide misapprehension as to liability for payment of fees. A short interval of three days elapsed between receipt of the Tribunal's communication that the notification was not applicable and the deposit of the fee; operational constraints within a co-operative society made immediate payment impracticable. The matter involved the exercise of the Tribunal's discretion under the statutory provision empowering condonation of delay where sufficient cause is shown. The circumstances were examined for sufficiency and for whether the discretion was exercised judicially.

Conclusion: The Tribunal was not justified in refusing to condone the delay in depositing the prescribed fee. The appeal is to be considered by the Tribunal on merits.

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