2019 (2) TMI 617 - AT - Income Tax

Condonation of delay - delay of 107 days - eligible reasons for delay - Held that - There is no thumb rule that the delay in all cases is to be condoned. However, Acceptability of the explanation is the only criteria . Sometimes the delay of the shortest range may be uncondonable due to want of acceptable explanation whereas in certain other cases, delay of a long range can be condoned as the explanation thereof is satisfactory. But when there is reasonable ground to think that the delay was occasioned by the party deliberately to gain time, then the court should lean against acceptance of the explanation. In the facts of the present case, the assessee has woken up from his slumber after a huge delay of 107 days and it has not been shown that all possible steps to file the appeal before the Tribunal were taken and the delay in filing the appeal was not because of any factors which were beyond the control of assessee . Considering all, we are not at all convinced with the casual and cavalier approach of the assessee in pursuing the legal remedy of approaching the Appellate Tribunal by way of filing appeal. Appeal filed by the assessee stands dismissed.

Summary

Issues:
Delay in filing appeal for AY 2010-11, Condonation of delay, Application of Section 253(5) of Income Tax Act, Provisions of Section-3 of the Limitation Act, Legal remedy and public policy, Precedents on condonation of delay, Acceptability of explanation for delay.

Analysis:
The appeal was filed against the order of Commissioner of Income Tax - 16 for AY 2010-11. Despite multiple calls and notices, the assessee did not appear, leading to an ex-parte hearing with the assistance of the Ld. DR. The assessee cited a delay of 107 days in filing the appeal, blaming the Chartered Accountant without providing the CA's affidavit. The Tribunal emphasized that condonation of delay is not automatic and must be justified by a reasonable cause, considering each case's unique circumstances. The provisions of Section 253(5) of the Income Tax Act allow for appeal admission post the statutory period if "sufficient cause" is shown.

The Tribunal referred to Section 3 of the Limitation Act, highlighting the bar on filing proceedings after the prescribed period, with Section 5 providing for condonation if "sufficient cause" is demonstrated. It was noted that limitation rules aim to prevent dilatory tactics while ensuring prompt remedies. Precedents like Rankak & Others v. Reva Coal Ltd and Madhu Dadha v. ACIT emphasized the need for a reasonable cause for condonation, with acceptability of the explanation being the key criterion.

In this case, the Tribunal found the delay uncondonable as the assessee had not shown taking all possible steps promptly and failed to prove factors beyond their control causing the delay. The Tribunal criticized the casual approach of the assessee towards pursuing the legal remedy, leading to the dismissal of the plea for condoning the delay. Consequently, the appeal was dismissed solely on the ground of limitation, without adjudicating other grounds raised by the assessee. The decision was pronounced on 5th Dec. 2018 in an open court session.