Condonation of delay in the case of Income Tax Appeals:
1. Limitation Act:
As per Section 5 of the Limitation Act of 1963 courts may, at their discretion, provide additional time in situations when the delay was caused by legitimate and reasonable reasons. This is the general idea of the condonation of delay.
The courts evaluate each case on its own merits, taking into account the cause for the delay, the lack of carelessness, the probable harm to the other party, and the explanation for the delay.
2. Right to appeal:
In Sita Ram v. State of U.P, the Supreme Court decided that the right to appeal is important and that it is a matter of substance rather than procedure.
3. Sufficient cause for condonation:
Hon SC in the case of Collector, Land Acquisition v Mst. Katiji And Others- 167 ITR 471 (SC) has held that the Legislature has conferred the power to condone delay by enacting section 51 of the Limitation Act of 1963 in order to enable the courts to do substantial justice to parties by disposing of matters on de merits.
The expression “sufficient cause ” employed by the Legislature is adequately elastic to enable the courts to apply the law in a meaningf ul manner which sub serves the ends of justice that being the lif e-purpose of the existence of the institution of courts
4. Condonation is not a statutory right:
Hon’ble Supreme Court in the case of Assistant Commissioner (CT) LTU, Kakinada & Ors. v. MIs Glaxo Smith Kline Consumer Health Care Limited 2020 has held that there is no denial or destruction of a statutory right in this case, by adhering to the prescribed period of limitation as otherwise it will only lead to protract the matter endlessly and will undoubtedly render the legislative scheme and intention behind the concerned provision otiose.
5. Delay due to genuine reason is a ground for condonation:
In Shree Swamy Samarth Vs ITO (ITA No. 237/Mum/2023), ITAT Mumbai held that as there was no malafide or deliberate in action on the part of the assessee in filing the appeal with delay of 387 days before the Ld. CIT(A). In fact the delay was due to the mistake of the CA. Accordingly, it was directed to CIT(A) to condone the delay.
6. Substantial question of law is a ground for condonation:
Calcutta HC has held in PCIT v. Soorajmul Nagarmull – [2022] (Calcutta) that, It will not be appropriate to reject an appeal based on a technical ground when the statute stipulates the requirements to consider the existence of a substantial question of law. Courts have to consider whether any substantial question of law arises for consideration if an appeal has been filed under Section 260A of the Income Tax, Act, 1961. Thus, the request for condonation of delay was to be allowed.
7. Spurious grounds do not call for a condonation:
The ITAT in Bejavada Subbayamma Vs ITO (ITAT Visakhapatnam) (I.T.A. No. 146/VIZ/2024) heard the case and dismiss the appeal of the assessee on the ground that the delay caused due to ill-health of the wife of the Chartered Accountant is not a ground.
The copy of the order is as under:
