1967 (11) TMI 25 - HC - Income Tax

Estate-Duty - delay in the filing of the appeal -Assessee became unconscious - Board was not justified in refusing to admit the appeal

Summary

Issues:
1. Delay in filing the appeal beyond the statutory period.
2. Justification for refusing to admit the appeal by the Board of Revenue.

The judgment pertains to a reference made under section 64(1) of the Estate Duty Act, 1953, involving questions of law related to the delay in filing an appeal and the justification for refusing to admit the appeal. The deceased was a Taluqedar and proprietor of an estate, and the accountable person failed to file a valid account of the property within the prescribed period. The Assistant Controller determined the estate's value and imposed duty, leading to an appeal by the accountable person. The appeal was filed beyond the limitation period, with reasons provided for the delay due to the accountable person's illness. The Board of Revenue dismissed the appeal, prompting the reference to the High Court.

Regarding the first question, the court analyzed the legal provision under section 63(2) of the Act, akin to section 5 of the Indian Limitation Act. The court noted that the Board of Revenue erred in expecting a detailed explanation for each day of delay in filing the appeal. Citing precedent, the court clarified that lack of diligence until the last day of limitation does not disqualify an appellant from seeking condonation of delay. The court found the Board's decision flawed, as it considered irrelevant factors and misconceived the legal position. Consequently, the court answered the first question in favor of the assessee, highlighting the Board's incorrect application of the law.

Addressing the second question, the court emphasized that the Board of Revenue failed to consider the sufficient cause provided by the appellant for the delay in filing the appeal. Despite accepting the appellant's illness as a fact, the Board questioned the timing and extent of the illness, overlooking the legal requirement to explain the delay until the last day of limitation. The court criticized the Board's approach, stating that even if the appellant became unconscious after the illness onset, the explanation for the delay would remain valid. The court concluded that the Board's assessment was legally flawed, leading to a negative answer in favor of the assessee. As there was no representation from the assessee, no costs were awarded in the matter.

In summary, the High Court ruled in favor of the assessee, highlighting the incorrect application of legal principles by the Board of Revenue in assessing the delay in filing the appeal and justifying the refusal to admit it. The judgment underscored the necessity to consider relevant legal standards and factual circumstances when determining the sufficiency of cause for delays in legal proceedings.