2019 (5) TMI 1006 - HC - Income Tax

Condonation of delay - delay of 122 days - reasons for the delay with reference to the illness of the Secretary of the Society - HELD THAT - The petitioner must demonstrate cogent reasons to condone the delay. Need upset finding on facts. It is well considered order. If explanation is not satisfactory, the Tribunal has to weigh balance of justice. No prejudice will be caused to respondents if delay is condoned; if not, petitioner will suffer. In such circumstances reasonable costs would balance the scale of justice. Accordingly, delay is ordered to be condoned on payment of cost of ₹ 25,000/-. The cost shall be deposited before the 1st respondent within three weeks and produce the receipt before the Tribunal. On condonation of delay, stay application shall be taken up and disposed within three weeks therein. Till such time coercive steps pursuant to impugned order in appeal shall be deferred.

Summary

Issues:
Challenging an Assessment Order due to delay in filing an appeal before the Income Tax Appellate Tribunal.

Analysis:
The petitioner, a Co-operative Society, challenged an Assessment Order by filing an appeal before the Income Tax Appellate Tribunal, but the appeal was filed with a delay of 122 days. The reason cited for the delay was the illness of the Secretary of the Society. The Tribunal, however, was not satisfied with the explanation provided for the delay.

The Court acknowledged that the delay was only 122 days but emphasized that the petitioner needed to provide cogent reasons to condone the delay. While recognizing the well-considered order of the Tribunal, the Court highlighted the importance of balancing the scales of justice. It was noted that no prejudice would be caused to the respondents if the delay was condoned, but the petitioner would suffer if it was not. Therefore, the Court ordered the delay to be condoned on payment of a cost of &8377; 25,000. The petitioner was instructed to deposit the cost before the 1st respondent within three weeks and produce the receipt before the Tribunal.

Additionally, the Court directed that upon the condonation of the delay, the stay application should be taken up and disposed of within three weeks. It was further ordered that coercive steps pursuant to the impugned order in appeal should be deferred until the stay application was resolved. Finally, the writ petition was disposed of by the Court.