2019 (4) TMI 1976 - HC - Income Tax

Condonation of delay - declining to entertain the delay of 1158 days in filing the appeal - ex-parte order was passed - HELD THAT - We are of the view that appropriate interference is called for. Merely holding technicalities against the assessee is not just and fair in the facts of this case. The reason for the delay would also have to be considered. The reason assigned by the assessee being just and reasonable in our view constitutes sufficient cause. We are of the view that the rights of the parties are required to be decided on merits and not on merely technicalities. Hence on these grounds the appeal is allowed. The delay in filing the appeal before the Tribunal is condoned. The appeal is restored to file.

Summary

Issues: Delay in filing appeal before the Income Tax Appellate Tribunal.

In this case, the primary issue revolves around the delay of 1158 days in filing an appeal before the Income Tax Appellate Tribunal. The appellant contended that the delay was due to an ex-parte order passed without proper notice being served as the appellant had changed addresses. The Tribunal, however, held that the delay did not constitute sufficient cause as more than three years had lapsed.

Upon hearing the arguments, the High Court judges noted that technicalities should not be held against the appellant unjustly. They emphasized that the reason for the delay must be considered, and in this case, the reason provided by the appellant was deemed just and reasonable. The judges opined that the rights of the parties should be decided on merits rather than technicalities. Consequently, the High Court allowed the appeal, condoned the delay in filing the appeal before the Tribunal, and restored the appeal to the file. The matter was remanded to the Tribunal for consideration on merits.