Sufficient cause for delayed appeal accepted, restoring the dispute for fresh decision on merits after limitation dismissal

Delay of 973 days in filing the appeal was held to be supported by sufficient cause, with the Covid-19 lockdown disruption and delayed service of assessment and recovery communications accepted on the facts. The Tribunal therefore treated the limitation default as condonable and set aside the first appellate authority's dismissal in limine. The matter was restored for fresh adjudication on merits after granting the assessee an opportunity of hearing.

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Issues: Whether the delay of 973 days in filing the appeal before the first appellate authority deserved condonation on the basis of sufficient cause, and whether the matter should be restored for adjudication on merits.

Analysis: The explanation for delay was found acceptable on the facts presented, including the disruption caused by the Covid-19 lockdown period and the assertion that the assessment and recovery communications were not served in time. On that basis, the Tribunal accepted that the assessee had shown sufficient cause for not filing the appeal within limitation. Since the first appellate authority had dismissed the appeal in limine on limitation, the appropriate course was to set aside that order and restore the matter for fresh consideration after granting an opportunity of hearing.

Conclusion: The delay was condoned in favour of the assessee, the dismissal by the first appellate authority was set aside, and the matter was remanded for decision on merits.

Final Conclusion: The assessee obtained restoration of the appeal before the first appellate authority, and the substantive dispute remains to be decided afresh.

Ratio Decidendi: Delay in filing an appeal may be condoned where the appellant establishes sufficient cause, and the matter should then be heard on merits rather than rejected solely on limitation.

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