Natural justice and substantial justice support restoration of a delayed statutory appeal for merits-based adjudication.

A statutory appeal rejected for delay may be restored where the assessee shows a plausible claim needing adjudication on merits, as substantial justice and natural justice justify reconsideration rather than threshold dismissal. The text explains this in the context of an educational institution claiming deduction under section 10(23C)(iiiad), where the first appellate authority had declined to hear the matter on technical grounds. The appeal was therefore set aside and remitted for reconsideration of condonation and disposal on merits.

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Issues: Whether the appeal, dismissed by the first appellate authority for want of condonation of delay, ought to be restored for consideration of admission as well as adjudication on merits.

Analysis: The assessee was an educational institution claiming deduction under section 10(23C)(iiiad) of the Income-tax Act, 1961. The first appeal had been rejected on technical grounds for delay. In the interests of natural justice, and on the footing that the assessee appeared eligible for the claimed deduction and should have an opportunity to establish its case, the matter required reconsideration rather than final rejection at the threshold.

Conclusion: The impugned order was set aside and the appeal was restored to the file of the first appellate authority for reconsideration of condonation and disposal on merits, in favour of the assessee.

Ratio Decidendi: Where a statutory appeal is rejected on a technical ground of delay, and the assessee shows a plausible entitlement requiring adjudication, substantial justice and natural justice justify restoration for consideration on merits.

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