Facts of the Case

The assessee filed appeals before the Income Tax Appellate Tribunal against orders passed by the Commissioner of Income Tax (Appeals). However, the appeals were filed beyond the prescribed limitation period.

The assessee submitted applications seeking condonation of delay along with affidavits explaining the reasons for late filing. The Tribunal was required to determine whether the explanation constituted “sufficient cause” for condoning the delay.

Issues Involved

  1. Whether the delay in filing the appeals should be condoned.
  2. What constitutes “sufficient cause” under Section 253(5).
  3. Balance between procedural discipline and substantive justice in tax appeals.

 Petitioner’s Arguments (Assessee)

  • The delay occurred due to circumstances beyond the assessee’s control.
  • The assessee acted bona fide and without intention to delay proceedings.
  • Supporting affidavits and explanations were furnished requesting liberal consideration.
  • Denial of condonation would result in loss of opportunity to contest the matter on merits.

Respondent’s Arguments (Revenue)

  • The assessee failed to provide convincing and verifiable reasons for the delay.
  • Mere general statements or unsupported explanations do not constitute sufficient cause.
  • Limitation provisions must be respected to maintain certainty in legal proceedings.

Court Order / Findings (ITAT)

The Tribunal observed that:

  • Condonation of delay is discretionary and depends on whether sufficient cause is established.
  • While a liberal approach may be adopted to advance substantial justice, the explanation must be reasonable, credible, and supported by material evidence.
  • Unexplained or inadequately explained delay cannot be condoned as a matter of routine.

 Important Clarification by the Tribunal

  • “Sufficient cause” must cover the entire period of delay.
  • The burden lies on the appellant to demonstrate bona fide reasons.
  • Procedural timelines cannot be ignored merely on equitable grounds.
  • Each case must be decided on its own facts.

Link to download the order –

 https://itat.gov.in/public/files/upload/1610534861-17%20to%2021%20Shesh%20Kumar%20Dubey.pdf

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