M/S SHRI VENKATESWARA TRUST ,VILLUPURAM vs. ITO , EXEMPTIONS , WARD - 1 , CHENNAI

The registry has noted delay of 496 days in the appeal, the condonation of which has been sought by the assessee on the strength of an affidavit of Managing Trustee. The Ld. AR submitted that there was delay of 556 days including Covid-19 exclusion period. The Ld. AR submitted that delay is attributable to uncertainty caused due to Corona Virus and the period from November, 2021 to May, 2022 would be covered by exclusion period as per the decision of Hon’ble Supreme Court. Therefore, the effective delay would be 129 days which may be condoned. The Ld. AR also submitted that the assessee has remained unrepresented during revisionary proceedings and therefore, another opportunity of hearing may be provided to the assessee. The Ld. CIT-DR, on the other hand, opposed condonation of delay and referred to the decision of Hon’ble Supreme Court in the case Basawaraj & Anr. Vs. The Spl. Land Acquisition Officer (CA No.6975 of 2013 dated 22.08.2013) wherein it has been held that 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 his case, and unless a satisfactory explanation is furnished, the court should not allow the application for condonation of delay. The court has to examine whether the mistake is bona fide or was merely a device to cover an ulterior purpose.

Upon perusal of rival submissions and contents of affidavit, we find that substantial period of delay is covered by exclusion period due to Covid-19 Pandemic. The delay is only for 129 days. The assessee is a trust and all the decisions have to be taken by the trustees. Considering the same, it could be said that the assessee had reasonable and sufficient cause in late filing of the appeal. Therefore, we condone the delay and proceed for disposal of the appeal.

Since impugned revisionary order passed u/s 263 on 30.03.2021 is an ex-parte order (para-9 of impugned order), concurring with the submissions of Ld. AR, we set aside the impugned order and provide another opportunity of hearing to the assessee. The revisionary authority may take appropriate call after affording reasonable opportunity of hearing to the assessee. 4. The appeal stand allowed for statistical purposes. Order pronounced in open court on 30th November, 2023.