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TMI Blog2014 (6) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax (Appeals) is illegal, arbitrary and unreasonable inasmuch as there was no mala fide intention on the part of the appellant in delaying the matter nor is it the case of the respondents that the appellant mala fidely delayed the filing of the appeal? b) Whether the law in respect of condonation of delay have been well-settled, and it is the cause of delay which is important for the purpose of considering the application for condonation of delay; and not the length of the delay? c) Whether the Appellate Tribunal committed error of law in rejecting the application filed by the appellant for condonation of delay? 3. Substantial question of law is re-framed as under:- "Whether the Tribunal fell in substantial error of law i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e application dated 20 February 2013 for condonation of delay filed by Mr.Mustaq Shaikh, one of the partners of the firm, the main reason given by the appellant-firm was that the appellant-firm sought legal opinion from the counsel, which took a long time and caused delay and therefore same may be condoned. 9. At the hearing before the Tribunal, however, it was pointed on behalf of the appellant-firm that Shaikh Ahmad, managing partner of the appellant-firm died on 15 November 2011 and therefore due to disturbing situation the other partners could not apply their mind even though order of CIT (Appeals) was received on 12 April 2012. This fact was placed before the Tribunal by way of "addendum to appeal memo and application for condonation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appeal memo and the application for condonation of delay that accounts and income-tax matters were being handled by Shaikh Ahmad, who was the senior and managing partner of the firm. 12. Today, learned counsel for the appellant has placed before us a copy of the letter dated 27 January 2009. It was signed by Shaikh Ahmad on behalf of the appellant-firm and also a copy of the appeal memo filed before the CIT (Appeals) on 27 January 2009, which was also signed by Shaikh Ahmad. 13. It is thus clear that Shaikh Ahmad, who was the senior partner of the firm was looking after the accounts and income-tax matters of the appellant-firm and therefore the explanation offered by the appellant-firm that on account of the death of Shaikh Ahmad, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icient cause for condonation of 253 days in filing an appeal. The Tribunal did not apply the correct legal test and did not even consider the explanation offered by the appellant that the senior managing partner of the appellant-firm had died a few months before the CIT (Appeals) passed the order adverse to the appellant-firm. According to the appellant, it had suffered net loss of Rs.5,58 lakh as per its books of account. The Assessing Officer, as confirmed by the CIT(Appeals) determined the income of the appellant as Rs.23.19 lakh. The question of applicability of Section 44AF and Section 43B was involved and the young inexperienced partners of the firm including the sons of the deceased Shaikh Ahmad did take some time in seeking legal op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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