2019 (4) TMI 1584 - HC - Income Tax

Condonation of delay of 3599 days - legitimate reasons of delay - serious health ailments and loss in business - HELD THAT - Though we find that no Substantial Questions of Law arises in the present case but taking a lenient and sympathetic view of the matter in view of the aforesaid facts and circumstances, where the main person looking after the business of Appellant Company suffered serious health ailments and loss in business due to which not only the proceedings before the First Appellate Court could not be attended, but also a huge delay occurred in preferring the Appeal before the learned Tribunal, we are inclined to allow the present appeal. Revenue also failed to bring on record any material on record for rebutting the averments made in the Affidavit filed by the Assessee. Request the learned Tribunal to decide the Appeal on merits. Delay condoned.

Summary

Issues:
1. Appeal filed by the Assessee dismissed as time-barred by the Income Tax Appellate Tribunal.
2. Reduction of penalty under Section 271 (1) (C) from &8377; 3,95,100/- to &8377; 3,20,000/.
3. Delay of 3599 days in filing the Appeal.
4. Consideration of health issues and business losses as grounds for condonation of delay.
5. Lack of rebuttal by Revenue regarding the Assessee's affidavit.

Analysis:
1. The Assessee filed an Appeal challenging a penalty under Section 271 (1) (C) imposed for unexplained credit in share application money. The penalty was reduced by the CIT (Appeals) from &8377; 3,95,100/- to &8377; 3,20,000/. The Appeal was dismissed by the Income Tax Appellate Tribunal as time-barred due to a delay of 3599 days.

2. The Assessee, through an affidavit, detailed the circumstances leading to the delay in filing the Appeal, citing health issues and business losses. The Assessee, a chronic cardiac and ulcer patient, suffered severe health problems and business setbacks, leading to the inability to attend proceedings and file the Appeal in a timely manner.

3. The High Court, after considering the facts and circumstances presented, found no substantial questions of law but decided to allow the Appeal due to the sympathetic view of the situation. The Court noted the lack of rebuttal by the Revenue regarding the Assessee's affidavit and set aside the Tribunal's order, requesting a fresh consideration of the Appeal on merits.

4. Despite the significant delay, the Court emphasized the Assessee's health issues, business losses, and advanced age of the main person involved as reasons for requesting the Tribunal to decide the Appeal on its merits. The Court acknowledged the exceptional circumstances and directed the Tribunal to proceed with the case in accordance with the law.

5. The judgment concluded by disposing of the Tax Case Appeal, highlighting the unique circumstances leading to the delay in filing the Appeal and the lack of material rebuttal by the Revenue. No costs were awarded in the disposition of the case.