Condonation of delay: pursuing rectification proceedings treated as reasonable cause; appeal restored to appellate authority for merits.

Condonation of delay was granted where the taxpayer pursued rectification proceedings before filing an appeal; the Tribunal treated pursuing rectification as a reasonable and sufficient cause for delay and set aside the impugned rejection of condonation. The Tribunal directed restoration of the case to the appellate authority with directions to condone the delay, afford the assessee reasonable opportunity to be heard, and decide the appeal on merits, thereby advancing substantial justice. The appeal was allowed partly for statistical purposes.

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Issues: (i) Whether delay in filing the appeal before the learned Commissioner of Income Tax (Appeals) should be condoned where the assessee pursued remedy by filing an application under Section 154 and subsequently filed the appeal, and whether the matter should be restored to the CIT(A) for adjudication on merits.

Analysis: The Tribunal examined the material on record, including the paper book and precedents relied upon, and considered that the assessee had filed application under Section 154 within prescribed time and thereafter filed appeal before the CIT(A). The Tribunal treated the act of pursuing rectification under Section 154 as a reasonable and sufficient cause for delay in instituting the appeal, and found that on the facts and circumstances of the case it was appropriate to allow condonation of delay so that substantial justice may be advanced. The Tribunal set aside the impugned order which had rejected condonation of delay and directed restoration of the matter to the file of the CIT(A) with directions to condone the delay and decide the appeal on merits after giving the assessee reasonable opportunity.

Conclusion: Delay in filing the appeal is condoned; the impugned appellate order is set aside and the matter is restored to the file of the CIT(A) with direction to condone the delay and decide the appeal on merits. The appeal is partly allowed for statistical purposes.

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