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TMI Blog2024 (4) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... within the period of limitation. Thus, the delay in the instant case is just of 1607 number of days which cannot be considered to be inordinate or excessive in comparison to the delay of 7330 days approximately. What is the sufficient cause of delay? - It is trite law that where a case has been presented in the Court beyond limitation, the petitioner has to explain the Court as to what was the sufficient cause which means an adequate and enough reason which prevented him to approach the Court within limitation. From the medical details filed by the assessee, we find that the assessee was having one or the other medical issues right from the financial years 2008-09 to 2019-20 which may not be of serious concern, but the ill-health of the assessee cannot be ruled out. Likewise, the assessee in the affidavit has also submitted that he was under a lot of financial stress and was declared as an insolvent. Furthermore, he was running away from the police and society. There was also a case against the assessee of cheque bouncing as evident from the details available on record. If we aggregate all these factors, the fact that the assessee was having a stressful life cannot be ruled out an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Penalty u/s 271(1)(c) - We note that the quantum addition against which the penalty under section 271(1)(c) of the Act was imposed by the revenue authorities, such quantum addition has already been set aside to the file of the AO [supra] for fresh adjudication as per the provisions of law. Accordingly, the penalty levied in the case on hand is not sustainable and liable to be deleted. The AO is at the liberty to proceed with the penalty under section 271(1)(c) of the Act in pursuance to the outcome of the quantum matter. - Shri Waseem Ahmed, Accountant Member And Shri Tr Senthil Kumar, Judicial Member For the Assessee : Shri Chetan Agarwal, AR For the Revenue : Ms Neeju Gupta, Sr.DR ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned two appeal have been filed at the instance of the Assessee against the separate orders of the Learned Commissioner of Income Tax (Appeals), Ahmedabad, arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as the Act ) relevant to the Assessment Year 2011-12. 2. The assessee has raised following grounds of appeal: 1. The Ld.AO has erred by making order u/s. 69, as there are no inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient cause for not presenting the appeal in time. Therefore, the revenue was not right in submitting that the appeal filed under section 17 was an appeal against the original order of assessment under the Act, which was passed about 20 years ago, as it was evident that the appeal was against an order of rejection of relief by the assessing authority. Thus, though the Tribunal's view that there was no question of limitation in such cases, was not correct yet the AAC was right in condoning the delay and entertaining the appeal. 6.1 From the above we note that the Hon ble Madras High Court was pleased to condone the delay for 20 years approximately by holding that there was sufficient and reasonable cause on the part of the assessee for not filing the appeal within the period of limitation. Thus, the delay in the instant case is just of 1607 number of days which cannot be considered to be inordinate or excessive in comparison to the delay of 7330 days approximately. 6.2 The next controversy arises what is the sufficient cause, it has not been defined anywhere under the Act but refers to an occasion which is beyond the control of a normal person. What is beyond the control of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the following cases: (a) Basawaraj v. Land Acquisition Officer, (2013) 14 SCC 81: 9. Sufficient cause is the cause for which the defendant could not be blamed for his absence. The meaning of the word sufficient is adequate or enough , inasmuch as may be necessary to answer the purpose intended. Therefore, the word sufficient embraces no more than that which provides a platitude, which when the act done suffices to accomplish the purpose intended in the facts and circumstances existing in a case, duly examined from the viewpoint of a reasonable standard of a cautious man. In this context, sufficient cause means that the party should not have acted in a negligent manner or there was a want of bona fide on its part in view of the facts and circumstances of a case or it cannot be alleged that the party has not acted diligently or remained inactive . However, the facts and circumstances of each case must afford sufficient ground to enable the court concerned to exercise discretion for the reason that whenever the court exercises discretion, it has to be exercised judiciously. The applicant must satisfy the court that he was prevented by any sufficient cause from prosecuting hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case) the party seeking condonation has to show by cogent evidence sufficient cause in support of its claim of condonation. The onus is greater. One of the propositions of settled legal position is to ensure that a meritorious case is not thrown out on the ground of limitation. Therefore, it is necessary to examine, at least prima facie, whether the assessee has or has not a case on merits. 6.7 From the above, it is transpired that a meritorious case of the assessee should not be thrown away due to negligence or on account of technical lapses. 6.8 In the light of the above stated discussion, we proceed to evaluate whether the delay in the present case needs to be condoned in the given facts and circumstances. From the medical details filed by the assessee, we find that the assessee was having one or the other medical issues right from the financial years 2008-09 to 2019-20 which may not be of serious concern, but the ill-health of the assessee cannot be ruled out. Likewise, the assessee in the affidavit has also submitted that he was under a lot of financial stress and was declared as an insolvent. Furthermore, he was running away from the police and society. There was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been utilized by the assessee either in the form of some investment or the same has been incurred as an expense, the deposits cannot be treated as income in the given facts and circumstances. Thus, in our considered view in such a situation the only option available to compute the income on some reasonable estimate. 6.10 The above view of the Hon ble Gujarat High Court was subsequently affirmed by the Hon ble Supreme Court reported in 133 taxmann.com 442. 6.11 In view of the above we are of the opinion that it is the fit case where the delay has to be condoned irrespective of the duration/period of the delay. In this case, the non-filing of an affidavit by the Revenue for opposing the condonation of delay itself is sufficient for condoning the delay of 1607 number of days. We also note that there is no allegation from the Revenue that the appeal was not filed by the assessee within the time deliberately. Therefore, we are inclined to prefer substantial justice rather than technicality in deciding the issue. We also find that if we reject the application of the assessee for condoning the delay then it would amount to legalise injustice on technical ground whereas the Tribunal is cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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