TaxTMI 
TaxTMI 
2025 (11) TMI 1382
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....e assessee has filed an application for condonation of delay. 3. Before adverting to the application of the assessee, we would like to take note of finding of the ld. CIT in paragraph No. 5 of 263 order, which reads as under : "5 In view of the above, the impugned order in the case of the assessee for A.Y. 2017-18is held erroneous in as much as prejudicial to the interest of the revenue on the issue of payment of salary to Shri Sorav Jain. In view of the above, it is held that the salary paid to Shri Sorav Jain is not allowable u/s 40(b) of the Act as twin conditions of Section 40(b) of the Act are not fulfilled/satisfied in his case (he is a non-working partner). However, the salary paid to Shri Ajay Kumar Jain and Shri Archit ....
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....ssed in pursuance of 263 order, then assessee withdrew that appeal and filed the present appeal. Thus, it has availed its remedy under misconception of facts or on failure of understanding of the Tax Consultant of the impugned order passed u/s 263 of the Act. Had it was advised to file an appeal against this order because in the second round, nothing has been left for the AO, then it would have filed the appeal well in advance. There is no deliberate attempt at the end of the assessee. It has prosecuted the Income Tax litigation at every stage. 5. We have perused the application for condonation of delay with the assistance of ld. Representative and also gone through all these facts and circumstances. We are of the view that there was no ....
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....lay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties. 3. "Every day's delay must be explained" does not mean that a pedantic approach should be made. Why not every hour's delay, every second's delay? The doctrine must be applied in a rational common sense pragmatic manner. 4. When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay....
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....e general welfare that a period be putt to litigation). Rules of limitation are not meant to destroy the right of the parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly. The idea is that every legal remedy 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 St....
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.... 2. Shri Rakesh Kumar Jain S/o Shri Amrit Lal Jain, resident of Ludhiana. 3. Shri Sorav Jain S/o Shri Rakesh Jain, resident of Ludhiana 4. Shri Archit Jain S/o Shri Ajay Kumar Jain, resident of Ludhiana 8.1 In clause No.4 of the Deed, the payment of salary to the partners is being provided. We deem it appropriate to take note of this clause also, which reads as under : 4. That the party of first, second and fourth part shall be working partners actively engaged in the conduct of the business and shall be paid remuneration as under : (a) Ajay Kumar Jain 70000/- per month (b) Sorav Jain 70000/- per month (c) Archit Jain 40000/- per month 8.2 The ld. CIT was of the view that at Sr. No....