Facts of the Case

The assessee filed an appeal before the Income Tax Appellate Tribunal with a delay beyond the prescribed statutory period. Along with the appeal, the assessee submitted an application seeking condonation of delay, explaining the reasons that prevented timely filing.

Issues Involved

Whether the delay in filing the appeal before the Tribunal should be condoned in the interest of justice.

Petitioner’s (Assessee’s) Arguments

  • The delay was neither deliberate nor due to negligence.
  • The assessee had a bona fide intention to pursue legal remedies.
  • Denial of condonation would result in loss of the right to appeal and substantial injustice.
  • Courts have consistently adopted a liberal approach where sufficient cause is demonstrated.

Respondent’s (Revenue’s) Arguments

  • The appeal was filed beyond the statutory limitation period.
  • Condonation should not be granted in absence of adequate justification.
  • Procedural timelines under the Act must be respected.

Court Order / Findings (ITAT Decision)

  • The assessee had shown reasonable and sufficient cause for the delay.
  • There was no evidence of deliberate inaction or mala fide conduct.
  • Technicalities of limitation should not defeat substantive justice.
  • Accordingly, the delay was condoned and the appeal was admitted for adjudication on merits.

Important Clarification

  • Each condonation request depends on its specific facts and explanation provided.
  • Sufficient cause must be genuine, reasonable, and supported by evidence.
  • The power to condone delay is discretionary and exercised to advance substantial justice.

Link to download the order - https://itat.gov.in/public/files/upload/1611824900-136%20Ashok%20Kumar%20Panda.pdf

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