2003 (4) TMI 237 - AT - Wealth-tax

Summary

Issues:
Delay in filing appeals before the first appellate authority leading to penalty under s. 18(1)(a) of the Wealth Tax Act.

Analysis:
The three appeals were filed by the assessee against the orders passed by the first appellate authority, confirming the penalty under s. 18(1)(a) for delay in filing. The first appellate authority declined to condone the delay of two days in filing the appeals, leading to the confirmation of the penalty.

The assessee contended that the delay was due to an inadvertent mistake by the tax manager in calculating the limitation period. The first appellate authority, however, was not satisfied with this explanation and refused to condone the delay, stating that the appellant failed to provide cogent reasons or circumstances justifying the condonation.

The learned Departmental Representative for the Revenue supported the first appellate authority's decision, arguing that the tax manager was well-versed in legal procedures, and the explanation provided was concocted. The appellate tribunal noted that courts have the power to condone delay if sufficient reasons are provided, as per the provisions of the Wealth Tax Act, the Limitation Act, and the CPC.

Referring to legal precedents, including the case of N. Balakrishnan vs. M. Krishnamirthy, the tribunal emphasized that the length of delay is not the sole criterion, but the acceptability of the explanation provided. The tribunal highlighted that the primary function of the court is to advance substantial justice and that rules of limitation should not impede the rights of parties seeking remedies.

In light of the circumstances, the tribunal found that there was sufficient cause for condoning the delay in filing the appeals. It was noted that the delay was a result of negligence on the part of the tax manager and not due to any mala fide intentions. The tribunal emphasized that the delay should not result in foreclosing the assessee's right to have their appeals heard on merit.

Ultimately, the tribunal allowed the appeals for statistical purposes, condoning the delay in filing the appeals and remanding the matter back to the first appellate authority for a decision on the merits of the appeals.

This detailed analysis of the judgment highlights the issues related to the delay in filing appeals under the Wealth Tax Act and the considerations taken into account by the appellate tribunal in reaching its decision.