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Facts
The assessee, Classic Pharma, filed an appeal against the order of the CIT(A)/NFAC for AY 2017-18. The CIT(A) had dismissed the assessee's appeal due to a delay of 145 days, ruling that the assessee failed to demonstrate "sufficient cause" under Section 249 of the Income Tax Act, 1961. The assessee contended the delay was due to a mistake by the AO, family tragedy, and confusion from a 'NIL' demand notice.
Held
The Income Tax Appellate Tribunal, applying the principles laid down by the Apex Court regarding condonation of delay, found that the assessee was not callous. Prioritizing substantial justice over technicalities, the Tribunal condoned the 145-day delay. The matter was remitted back to the CIT(A)/NFAC for fresh adjudication on merits, with directions to provide the assessee a reasonable opportunity of being heard.
Key Issues
Whether the CIT(A) was justified in dismissing the assessee's appeal due to a 145-day delay, and if the Tribunal should condone the delay and remit the case for adjudication on merits.
Sections Cited
250, 249
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH:COCHIN
O R D E R PERKESHAV DUBEY, JUDICIAL MEMBER: This appeal at the instance of assessee is directed against the order of the ld. CIT(A)/NFAC dated 20.8.2024 vide DIN & Order No.ITBA/NFAC/S/250/2024-25/1067776481(1)for the AY 2017-18 passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”).
The assessee has raised the following grounds of appeal:
2. Before us, both the parties fairly conceded that there is a delay of 145 days in filing the appeal before the ld. CIT(A), which is not condoned by the ld. CIT(A) on the ground that the assessee has not discharged the onus of “sufficient cause” within the meaning of section 249 of the Act.Hence, the delay in filing of appeal more than 4 months was not accepted by the ld. CIT(A)/NFAC and accordingly,
We have heard the rival submissions and perused the materials available on record. On going through the grounds for condonation of delay filed before the CIT(A)/NFAC, in our opinion, it cannot be said that assessee is very callous in its approach in filing the appeal before the ld. CIT(A). At this juncture, it is appropriate to mention the judgement of Apex Court in the case of Collector Land Acquisition v. Mst. Katiji and Ors. (167 ITR 471) laid down six principles. For the purpose of convenience, the principles laid down by the Apex Court are reproduced hereunder: (1) Ordinarily, a litigant does not stand to benefit by lodging an appeal late (2) Refusing to condone delay can result in a meritorious matter being thrown at the very threshold and cause of justice being defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. (3) 'Every day's delay must be explained' does not mean that a pedantic approach should be made. Why not every hour's delay, every second's delay? The doctrine must be applied in a rational, commonsense and pragmatic manner. (4) When substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay. (5) There is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact, he runs a serious risk. (6) It must be grasped that the judiciary is respected not on account of its power to legalise injustice on technical grounds but because it is capable of removing injustice and is expected to do so.
Classic Pharma, Alappuzha Page 4 of 4 3.1 Being so, when substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserve to be preferred for the other side and claimed to have vested right for injustice doing so because of non-deliberate delay.
This being so, we condone the delay in filing the appeal before the ld. CIT(A)/NFAC and direct the ld. CIT(A)/NFAC to admit the appeal for adjudication and accordingly we remit the entire issue in dispute to the file of ld. CIT(A)/NFAC to decide afresh in accordance with the law. Needless to say, reasonable opportunity of being heard to the assessee must be granted to the assessee. It is ordered accordingly.