BALWAN SINGH vs. I.T.O. WARD 1(4) CHANDIGARH

Facts

The assessee, Balwan Singh, filed an appeal before the Income Tax Appellate Tribunal (Tribunal) for assessment year 1995-96. This appeal was filed after the assessee withdrew two writ petitions (CWP No. 11443 of 2009 and CWP No. 5292 of 2009) before the High Court of Punjab & Haryana. The High Court, on 06.09.2010, had granted liberty to file an appeal before the Tribunal within 15 days, stating no objection regarding limitation would be raised if filed within that period. The assessee received the High Court's order on 01.10.2010 and filed the appeal on 11.10.2010. The Tribunal dismissed the appeal on 28.02.2013, refusing to condone a delay of 20 days.

Held

The High Court held that the Tribunal had taken a hyper-technical view in refusing to condone the delay. The assessee had provided sufficient reasons for the delay, which should have been accepted. The High Court noted that the delay occurred because the certified copy of the High Court's order was supplied to the assessee only on 01.10.2010, and the appeal was filed within 15 days of receipt. Citing the Apex Court and its own precedents, the High Court emphasized a liberal approach in considering applications for condonation of delay, especially for short durations, to ensure adjudication on merits. The expression 'sufficient cause' is elastic to subserve the ends of justice. The delay of a few days should have been condoned. The Tribunal's order dated 28.02.2013 was set aside, and the matter was remanded back to the Tribunal to decide the case on merits after issuing notice to the parties.

Key Issues

1. Whether the Tribunal erred in refusing to condone the delay of 20 days in filing the appeal, thereby denying adjudication on merits? (Question of law and fact, turning on the interpretation of 'sufficient cause' for condonation of delay under the Income Tax Act, 1961). Assessee's contention: The assessee argued that the delay was not intentional or deliberate but was due to reasons beyond his control. He received the certified copy of the High Court's order only on 01.10.2010 and filed the appeal on 11.10.2010, which was within 15 days of receiving the order. An application for condonation of delay was filed on the advice of counsel. Revenue's contention: The judgment records no specific contention from the revenue regarding the delay.