2003 (8) TMI 33 - HC - Income Tax

Delay in presenting the appeal - sufficient cause - Limitation Act 1963 - we are inclined to hold that sufficient cause has been made out for explaining the delay of 108 days in presenting the appeal. The application for condonation of delay is accordingly allowed and the delay in presenting the appeal is condoned.

Summary

Issues:
Condonation of delay under section 5 of the Limitation Act, 1963.

Analysis:
The judgment delves into the interpretation and application of section 5 of the Limitation Act, 1963, concerning the condonation of delay in filing appeals or applications. The applicant argued that no explanation for delay was required within the prescribed period of limitation, citing various court decisions to support this stance. A difference of opinion arose among judges regarding whether the cause of delay should be explained for the entire period or only after the prescribed period. The court referred to past judgments, including one by the Supreme Court, to determine the correct interpretation of the phrase "within such period" in section 5.

The court analyzed the principle of "sufficient cause" as a basis for condoning delay, emphasizing the need for a liberal construction to advance substantial justice. Various Supreme Court decisions were cited to highlight the importance of adopting a pragmatic approach, especially when the State is involved in seeking condonation of delay. The court noted that the law of limitation applies equally to private citizens and governmental authorities, but considerations may vary in cases involving public interest or bad faith.

The judgment discussed the necessity of explaining the cause of delay comprehensively, covering both the period within and beyond the prescribed limitation period. The court highlighted the challenges faced by governmental authorities in explaining delays, often attributed to bureaucratic processes. Emphasizing the need to link the causes of delay throughout the entire period, the court concluded that sufficient cause had been demonstrated in the present case to justify condoning the delay of 108 days in filing the appeal. The application for condonation of delay was allowed, and the appeal was directed to be registered for admission.

The court expressed appreciation for the assistance provided by amicus curiae in reaching a just decision. The judgment underscored the importance of considering each case on its merits, guided by the overarching principle of advancing substantial justice. The decision reflected a nuanced understanding of the complexities involved in condoning delay under the Limitation Act, aiming to strike a balance between procedural requirements and the fundamental goal of ensuring justice between the parties involved.