TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 1124
X X X X Extracts X X X X
X X X X Extracts X X X X
....Managing Director of the assessee company stating the reasons of delay. As per para 9 of the affidavit, it has been sworn that the concerned employee, who was handling with the taxation matter left the assessee company and due to inadvertent mistake, the papers and documents, related to the appeal remained to be handed over, which caused the delay. It has been further sworn that prima-facie the assessee is having a good case and equity of justice demand that the delay may be condoned. It has been further mentioned that if the delay is not condoned, it will greatly prejudice and harm the assessee. Reliance was placed upon the decision of the Tribunal in Sterlite Industries India Ltd. vs Addl. CIT (2006) 6 SOT 497 (Mum.) to the effect that fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2001-02, was decided in favour of the assessee. It was also contended that for earlier and later assessment years, in view of the decision from Hon'ble Apex Court in Topman Exports vs CIT (2012) 342 ITR 49(SC), the matter was restored to the file of the Assessing Officer, therefore, if the delay is condoned, it has to be remanded back to the file of the Assessing Officer. This factual matrix was not controverted by the ld. DR. 2.2. On the issue of estimating 5% of the dividend income as proportionate expenditure for earning tax free income invoking the provisions of section 14A of the Act, is concerned, it was contended that assessment year involved is 2002-03, the estimation of expenses is highly excessive. 2.3. The moot question to be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., the assessee is expected to be vigilant in adhering to the manner and mode in which the appeals are to be filed in terms of the relevant provisions of the Act. Nevertheless, a liberal approach has to be adopted by the appellate authorities, where delay has occurred for "bona fide reasons" on the part of the assessee or the Revenue in filing the appeals. In matters concerning the filing of appeals, in exercise of the statutory right, a refusal to condoned the delay can result in a meritorious matter being thrown out at the threshold, which may lead to miscarriage of justice. The judiciary is respected not on account of its power to legalize injustice on technical grounds but because it is capable of removing injustice and is expected to do....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ourts to do substantial justice to parties by disposing of matters on de merits. The expression "sufficient cause" employed by the legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice that being the life-purpose of the existence of the institution of courts. It is common knowledge that this court has been making a justifiably liberal approach in matters instituted in this court. But the message does not appear to have percolated down to all the others courts in the hierarchy." 2.6. Furthermore, the Hon'ble Supreme Court in the case of Vedabai Alia Vaijayanatabai Baburao Patil vs. Shantaram Baburao Patil 253 ITR 798 held that the court has to exercise t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dy must be kept alive for a legislatively fixed period of time. A court knows that refusal to condone delay would result foreclosing a suitor from putting forth his cause. There is no presumption that delay in approaching the court is always deliberate. This Court has held that the words "sufficient cause" under Section 5 of the Limitation Act should receive a liberal construction so as to advance substantial justice vide Shakuntala Devi lain Vs. Kuntal Kumari [AIR 1969 SC 575] and State of West Bengal Vs. The Administrator, Howrah Municipality [AIR 1972 SC 749]. It must be remembered that in every case of delay there can be some lapse on the part of the litigant concerned. That alone is not enough to turn down his plea and to shut the doo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Courts and the material facts available on record, more specifically, the reasons of delay, as the employee, who was earlier handling the tax matters of the assessee company, while leaving the job of the assessee company, did not handover the relevant papers either to the assessee or to the next person, which caused delay, cannot be overlooked, therefore, considering the totality of facts, supported by an affidavit, and the factual matrix, by taking a lenient view, the delay is condoned. The assessee is also directed to remain vigilant in future. Before we part with, it is made clear that the delay in the present appeal has been condoned to the peculiar facts of the case, therefore, may not be quoted as precedent. 2.11. So far as, the con....