2004 (7) TMI 78 - HC - Income Tax

Condonation of delay in filing the appeal - It is not in dispute that there was only a delay of 12 days in filing the appeal - He further submitted that the appellant was bona fide pursuing his remedy and in fact had handed over the papers to his counsel Shri Sachdeva who for some reasons had not prepared and filed the appeal within time and therefore a liberal view ought to have been taken by the authorities and the delay should have been condoned. - Commissioner of Income-tax (Appeals) ought to have condoned the delay in filing the appeal. The matter is remanded to the Commissioner of Income-tax (Appeals) to pass appropriate orders on the application for condonation of delay

Summary

Issues:
Condonation of delay by the Commissioner of Income-tax (Appeals)

Analysis:
The appeal in question involved the issue of whether the non-condonation of delay by the Commissioner of Income-tax (Appeals) was arbitrary and against settled principles. The appellant had filed an appeal under section 246 of the Income-tax Act, 1961, after a delay of 12 days from the prescribed deadline. The appellant had submitted an application under section 5 of the Limitation Act for condonation of delay, stating that the delay occurred due to the counsel not filing the appeal on time despite receiving the necessary papers. The Commissioner of Income-tax (Appeals) declined to condone the delay and dismissed the appeal, a decision that was upheld by the Income-tax Appellate Tribunal. The appellant argued that the delay was minimal, and a liberal view should have been taken considering the circumstances.

The High Court, citing the case law of Collector, Land Acquisition v. Mst. Katiji, emphasized that a liberal view should be taken in cases of short delays where the appellant stands to gain nothing from the delay. In light of this principle, the High Court set aside the orders of the Commissioner of Income-tax (Appeals) and the Tribunal. The High Court held that the Commissioner of Income-tax (Appeals) should have condoned the delay and remanded the matter back to the Commissioner to reconsider the application for condonation of delay. The court directed the Commissioner to decide the appeal on its merits expeditiously, preferably within three months.

In conclusion, the High Court allowed the appeal, overturning the decisions of the lower authorities. The court emphasized that there would be no order as to costs in this matter.