Facts of the Case

The assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] against the assessment order beyond the prescribed limitation period. The delay extended substantially beyond the statutory time limit. The assessee submitted reasons explaining the delay and requested condonation on the ground that the delay occurred due to circumstances beyond control.

Issues Involved

  1. Whether the delay in filing the appeal before the CIT(A) should have been condoned under Section 249(3) of the Income-tax Act, 1961.
  2. Whether dismissal of the appeal in limine without considering the merits is legally sustainable.
  3. Whether the assessee had shown sufficient cause for the delay.
  4. Whether refusal to condone delay resulted in denial of substantive justice. 

Petitioner’s Arguments

  • The assessee contended that the delay was not deliberate or intentional but occurred due to genuine and unavoidable circumstances.
  • It was argued that the right of appeal is a valuable statutory right and should not be defeated on technical grounds.
  • The assessee submitted that the CIT(A) failed to adopt a liberal approach while evaluating the explanation for delay.
  • It was further contended that dismissal without adjudication on merits violated principles of natural justice and resulted in grave prejudice.

Respondent’s Arguments

  • The Revenue supported the order of the CIT(A), asserting that the assessee had not provided a satisfactory explanation for the inordinate delay.
  • It was contended that statutory timelines must be respected and condonation cannot be granted mechanically.
  • The Revenue argued that the CIT(A) acted within jurisdiction in dismissing the appeal as time-barred due to absence of sufficient cause.

Court Order / Findings

  • The power to condone delay is intended to advance substantial justice where sufficient cause exists.
  • A liberal and justice-oriented approach should be adopted, particularly where refusal would result in denial of adjudication on merits.
  • Dismissing an appeal in limine without examining the issues raised may cause serious injustice.

Important Clarification

The Tribunal clarified that condonation of delay does not amount to acceptance of the assessee’s claims. It merely restores the appellate proceedings so that the issues can be examined and decided in accordance with law on merits.

Link to download the order –

https://itat.gov.in/public/files/upload/1627638240-ITA%20No.%2035%20of%202020.pdf

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