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2021 (2) TMI 104 - HC - Income TaxCondonation of delay - reasons for delay - Whether appellant has demonstrated that the lapses were not voluntary and there was reasonable cause for the delay on the facts and circumstance of the case? - HELD THAT - It is well settled in law that the expression sufficient cause should receive liberal consideration so as to advance the cause of justice and the same should not be used as a penal statute to punish the erring parties. (See PERUMON BHAGAVATHY DEVSWOM V. BHARGAVI AMMA (DEAD) BY LRS 2008 (7) TMI 836 - SUPREME COURT The assessee is admittedly an agriculturist and is required to closely monitor the agricultural activity in the field. The son of the assessee was preparing for board exam and assessee was required to stay in Hassan to ensure that his son attends extra classes. Therefore the assessee was unable to contact his counsel for the reasons which were beyond his control. Thus in the fact situation of the case the Tribunal should have taken a liberal view with regard to the cause shown by the assessee seeking condonation of delay. We hold that the finding recorded by the Tribunal that in the fact situation of the case sufficient cause for condonation of delay was not made out by the assessee is perverse. Decided in favour of the assessee and against the revenue.
Issues:
Delay in filing appeal before the Tribunal and condonation of delay. Analysis: The appellant, an agriculturist and coffee commission agent, filed income tax returns for the years 2007-08 and 2008-09, showing total incomes. The Assessing Officer later made additions to the income based on cash deposits in savings accounts. The appellant appealed to the Commissioner of Income Tax (Appeals), who partly allowed the appeal. Subsequently, the appellant filed an appeal before the Income Tax Appellate Tribunal with a delay of 338 days, citing the son's board exams as a reason for the delay. The Tribunal dismissed the appeal and the condonation of delay application, stating insufficient cause. The High Court considered the liberal interpretation of "sufficient cause" in law and found the Tribunal's decision as perverse, holding that the delay should be condoned due to the circumstances beyond the appellant's control. The Court quashed the Tribunal's order, allowing the appeal to be heard on its merits. The primary issue in this case was the delay in filing the appeal before the Tribunal and the subsequent condonation of the delay. The appellant sought condonation of a 338-day delay, attributing it to personal reasons related to the son's board exams. The Tribunal dismissed the application, deeming the cause insufficient. The High Court, considering established legal principles, held that the Tribunal's decision was erroneous and that the delay should be condoned due to the circumstances presented by the appellant. The Court emphasized the need for a liberal interpretation of "sufficient cause" to serve the interests of justice. The appellant argued for a liberal interpretation of "sufficient cause" to justify the delay in filing the appeal. The revenue contended that the Tribunal's decision was correct as the appellant failed to establish a valid reason for the delay. The High Court, after reviewing the submissions and legal precedents, found in favor of the appellant, emphasizing that "sufficient cause" should not be narrowly construed to penalize parties. The Court held that the appellant's situation warranted a lenient view, given the uncontrollable factors that led to the delay. Consequently, the Court quashed the Tribunal's order and directed the appeal to be heard on its merits, acknowledging the appellant's justification for the delay. In conclusion, the High Court ruled in favor of the appellant, emphasizing the importance of a liberal interpretation of "sufficient cause" in condoning delays to uphold the principles of justice. The Court's decision highlighted the need to consider individual circumstances and avoid penalizing parties for reasons beyond their control. The judgment set aside the Tribunal's order, allowing the appeal to proceed for a full hearing on its merits.
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