2010 (8) TMI 590 - HC - Income Tax

Condonation of delay - The assessee that the appeals could not be filed in time because of the fact that the original orders passed by the Assessing Officer were misplaced and the records from the erstwhile Chartered Accountant could not be received in time - The Tribunal has found that the delay has been properly explained by the assessee and after convincing with the said reason assigned by the assessee the Tribunal has exercised its discretion in favour of the assessee - When such a discretion is exercised based upon the materials available on record do not find any reason to interfere with the same - Accordingly the appeals stand dismissed - Decided in favour of assessee.

Summary

Issues involved: Condonation of delay in filing appeals before the Commissioner of Income-tax (Appeals), Tribunal's decision to allow the appeals, challenge by the Revenue, substantial questions of law raised by the Revenue, reasons for delay in filing appeals, contentions of the appellant's counsel, affidavit filed by the Chartered Accountant explaining the delay, Tribunal's discretion in favor of the assessee, absence of substantial question of law, directive to the Commissioner of Income-tax (Appeals) for time-bound disposal of appeals.

Analysis:

The appeals were filed before the Commissioner of Income-tax (Appeals) challenging the assessment orders for the years 2000-2001 and 2001-2002 with applications seeking condonation of significant delays. The appellant contended that the delays were due to misplaced assessment orders and the change of authorized representative. However, the Commissioner of Income-tax (Appeals) dismissed the appeals citing unacceptable reasons for the delay.

Subsequently, the assessee appealed to the Tribunal, which allowed the appeals. The Revenue then challenged the Tribunal's decision by raising substantial questions of law regarding the condonation of delay and the sufficiency of reasons provided by the assessee for the delay.

The appellant's counsel argued that the assessee was not diligent in filing the appeals within the prescribed time and accused the assessee of adopting delaying tactics. The counsel also highlighted the absence of representation before the Tribunal as a point of contention.

The Tribunal's decision to condone the delay was based on the explanations provided by the Chartered Accountant, who filed an affidavit detailing the reasons for the delay. The Tribunal found the reasons satisfactory and exercised its discretion in favor of the assessee. The High Court noted that the delay was adequately explained, and the Tribunal's decision was based on proper reasoning, leading to the dismissal of the appeals by the Revenue.

The High Court emphasized that the mere delay in filing appeals cannot be a sole ground for non-condonation. It upheld the Tribunal's decision, stating that the assessee had raised substantial issues on merits, and there was no substantial question of law to interfere with the Tribunal's ruling. The Court directed the Commissioner of Income-tax (Appeals) to dispose of the appeals within three months, considering the assessment years involved.

In conclusion, the High Court dismissed the appeals, upheld the Tribunal's decision to condone the delay, and directed the timely disposal of the appeals by the Commissioner of Income-tax (Appeals) for the assessment years 2000-2001 and 2001-2002.