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2014 (7) TMI 129 - AT - Income TaxCondonation of delay for filing an appeal before CIT(A) - illness of MD - Delay and defect in memos – Penalty u/s 271 - Held that:- The assessee has not only explained the cause of delay but has also submitted evidence to substantiate the claim - The evidence on record show that the MD was keeping ill intermittently - It is not necessary that only when a person is immobile or bedridden he would not be able to attend to his day to day activities - Even when a person is afflicted with illness quite intermittently, it not only takes a toll on him physically but also mentally - It so much preoccupies his mind that, it is quite possible that many other acts or duties, which he could otherwise have attended to if not ill, escapes his attention. Relying upon Collector of Land Acquisition V/s. Mst. Katiji and others [1987 (2) TMI 61 - SUPREME Court] - when substantial justice and technical considerations are pitted against each other, 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 - there is sufficient cause for condoning delay - CIT(A) was not justified in dismissing the appeals on the ground without pointing out the defect and allowing opportunity to the assessee to rectify it – thus, the order of the CIT(A) is set aside with a direction to decide the appeal on merit after condoning delay – Decided in favour of Assessee. Imposition of penalty u/s 271(1)(c) of the Act – Held that:- At this stage it will be premature to impose penalty u/s 271(1)(c) of the Act, when assessee’s appeals against assessment orders are still pending - It may be recalled that CIT(A) dismissed in limine appeals preferred by the assessee against the assessment orders - Though, technically penalty proceeding u/s 271(1)(c) of the Act can be invoked during pendency of quantum appeal, but to avoid multiplicity of proceeding and unnecessary harassment to the assessee it is always advisable to wait for the decision of the appellate authorities on quantum additions – the order of the CIT(A) is set aside and the matter is remitted back to the AO – Decided in favour of Assessee.
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