Limitation in tax appeal may be overlooked for a marginal delay, with remand on merits subject to additional pre-deposit.

A tax appeal filed with a marginal delay of 14 days was not treated as fatal, and the order rejecting the appeal on limitation was set aside. The matter was remitted to the Appellate Commissioner for fresh disposal on merits and in accordance with law, with the assessee to be heard without reference to limitation. That relief was made subject to an additional pre-deposit of 20% of the disputed tax over and above the earlier 10% deposit, so the appeal could proceed to merits-based adjudication.

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Issues: Whether the rejection of the petitioner's appeal on limitation could be interfered with, and whether the matter should be remitted for disposal on merits with a condition as to further pre-deposit.

Analysis: The appeal had been filed with a marginal delay of 14 days beyond the statutory period. The impugned order rejecting the appeal was set aside, and the matter was sent back to the Appellate Commissioner for fresh consideration on merits and in accordance with law. The petitioner was to be heard without reference to limitation, subject to depositing an additional 20% of the disputed tax over and above the earlier 10% pre-deposit.

Conclusion: The rejection of the appeal on limitation was interfered with, and the petitioner obtained a remand for decision on merits subject to additional pre-deposit.

Final Conclusion: The writ petition was allowed, the appellate rejection was quashed, and the appeal was restored to be decided afresh on merits with the stipulated pre-deposit condition.

Ratio Decidendi: A marginal delay in filing a tax appeal can justify interference with a rejection order and remand for merits-based adjudication when the court deems the limitation-based refusal inappropriate in the circumstances, subject to compliance with pre-deposit requirements.

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