Jurisdictional challenge to late fee under section 234E justified condonation of delay and fresh appellate hearing.

Where a levy of late fee under section 234E was challenged on jurisdictional grounds, the Tribunal stated that an ex parte dismissal of the appeal solely as time barred was not justified without examining the merits. It accepted that the delay should be condoned so the objection to processing under section 200A and the validity of the levy could be adjudicated by the first appellate authority. The Tribunal did not itself decide the fee demand, but set aside the dismissal and restored the matter for fresh adjudication after hearing the assessee.

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Issues: Whether the appeal dismissed by the first appellate authority as time barred required condonation of delay where the levy of late fee under section 234E was itself under challenge, and whether the matter should be restored for fresh adjudication.

Analysis: The appeal was dismissed ex parte only on the ground of delay without examination of the jurisdictional challenge to the levy of late fee. The Tribunal followed the view that where the validity of the levy itself is questioned, delay in pursuing the appeal should not defeat consideration on merits. It accepted that the objection to levy under section 234E, in the context of processing under section 200A, warranted condonation of delay and fresh adjudication by the first appellate authority. The Tribunal therefore declined to enter into the merits of the fee demand and directed reconsideration after granting opportunity of hearing.

Conclusion: The delay was to be condoned, the ex parte dismissal was set aside, and the matter was restored to the first appellate authority for de novo decision. The issue was decided in favour of the assessee.

Ratio Decidendi: When the levy itself is assailed on jurisdictional grounds, dismissal of the appeal solely for delay is unjustified and the appellate authority should condone the delay and decide the matter on merits.

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