1984 (3) TMI 119 - AT - Income Tax

Summary

Issues:
1. Late submission of appeal memoranda before the AAC.
2. Validity of subsequent memorandum of appeal filed after the original appeal.
3. Admissibility of the appeal before the ITAT.

Detailed Analysis:
1. The assessee filed an appeal before the AAC on 1-1-1983 but later submitted another memorandum of appeal on 4-1-1983 due to the partner's absence, explaining the delay. The AAC dismissed both memoranda as the first was improperly signed, and the second was out of time, without considering the explanation for the delay.

2. The assessee contended before the ITAT that rectifying the defect in the first memorandum on 3-1-1983 related back to the original filing date, citing legal precedents. The ITAT noted that the first memorandum was invalid but deemed the subsequent corrected filing as valid, following the principle of relation back as established by the Calcutta and Orissa High Courts.

3. The ITAT further observed that the AAC erred in summarily rejecting the second memorandum without proper justification, despite the assessee's diligence in rectifying the defect within two days. The ITAT held that the AAC should have considered condoning any delay and reversed the decision, restoring the appeal to the AAC for merit-based disposal.

In conclusion, the ITAT allowed the appeal, emphasizing the importance of rectifying defects in appeal memoranda and the need for proper consideration of explanations for delays in filings. The judgment highlighted the principle of relation back in correcting defects and underscored the requirement for due diligence in appeal submissions.