TMI Blog2014 (9) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the CIT(A) and the Tribunal treating the income from letting out of warehouses as business income for the earlier assessment years, but such request was rejected by the AO - assessee has been continuously pursuing his appeals for the earlier assessment years on the very same issue before the CIT(A) and the Tribunal - the assessee's plea is bona fide and it would constitute “sufficient cause” for not presenting the appeal within the prescribed period – thus, it is a fit case where the assessee is entitled to the benefit of Section 249(3) of the Act – relying upon Collector, Land Acquisition v. Katiji, [1987 (2) TMI 61 - SUPREME Court] – thus, the delay is condoned and the matter is remitted back to the CIT(A) for fresh consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals), by order dated 13.3.2009 made in I.T.A.Nos.269 and 270/2008-09, held that warehousing income should be treated as business income. 2.2. Despite the above orders passed by the higher authorities, the department declined to treat the income of the assessee from letting out of warehouses as business income for the assessment year 2007-2008 and an assessment was made under Section 143(3) of the Act on 27.10.2009. 2.3. This assessment order ought to have been appealed by the assessee before the Commissioner of Income Tax (Appeals). However, the assessee did not file an appeal primarily on the ground that the issue as to whether the income from letting out of warehouses is income from business or income from house property was the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent appeal is filed by the assessee on the substantial questions of law, referred supra. 3. We have heard the learned counsel on either side and perused the orders passed by the Tribunal and the authorities below. 4. Before adverting to the merits of the case, it would be relevant to refer to Section 249(3) of the Act, which reads as under: Section 249. Form of appeal and limitation.- (1) and (2) ....... (3) The Commissioner (Appeals) may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting it within that period. 5. Section 249(3) of the Act empowers the Commissioner of Income Tax (Appeals) to admit the appeal after the expiration of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered opinion, the same would constitute sufficient cause for not presenting the appeal within the prescribed period and, therefore, it is a fit case where the assessee is entitled to the benefit of Section 249(3) of the Act. 9. The above said view of this Court is fortified by the decision of the Supreme Court in The Collector, Land Acquisition v. Katiji, [1987] 167 ITR 471 (SC), wherein it has been held as under: The expression 'sufficient cause' employed by the Legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice that being the life-purpose of the existence of the institution of courts. .... When substantial justice and technical co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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