Court sets aside Tribunal order, directs appeal consideration. Delay condoned due to genuine mistake. One appeal principle reiterated.

The Court allowed the appeal, setting aside the Tribunal's order and directing the Tribunal to entertain and decide the appeal on its merits. The delay in filing the appeal before the Tribunal was condoned due to the appellant's genuine mistake in pursuing the remedy at the wrong forum, which caused the delay. The Court emphasized the principle of the right of one appeal prevailing in all jurisdictions.

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Issues: Condonation of delay in filing an appeal before the Income Tax Appellate Tribunal due to pursuing remedy at the wrong forum.

Analysis:
The appeal filed under Section 260-A of the Income-tax Act, 1961 was directed against an order dismissing the application seeking condonation of delay of 242 days by the Income Tax Appellate Tribunal. The appellant had mistakenly availed the remedy of appeal before the Regular Appellate Authority, CIT (A) Karnal, leading to the delay. The Tribunal has the power to condone the delay under Section 253(5) of the Act if sufficient cause is shown for not presenting the appeal within the prescribed period. The Tribunal rejected the appeal by refusing to condone the delay, citing the lack of a bona fide reason disclosed for condonation of delay. However, no satisfaction with regard to the plea raised by the appellant was recorded. The appellant pursued the remedy at a wrong forum in a bona fide belief that the appeal was competent before CIT (A) Karnal, without any ill intention to avail any benefit. The delay in filing the appeal before the Tribunal for the period spent on pursuing the remedy before the wrong forum should have been condoned by the Tribunal.

The Court noted that the appellant's mistake in pursuing the remedy before CIT (A) Karnal was bona fide, causing the delay in filing the appeal before the Tribunal. The principle of the right of one appeal prevailing in all jurisdictions was emphasized. Therefore, the Court allowed the appeal, setting aside the Tribunal's order and directing the Tribunal to entertain the appeal and decide it on merit. The Court concluded that the delay should be condoned due to the appellant's genuine mistake in pursuing the remedy at the wrong forum, leading to the delay in filing the appeal before the Tribunal.

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