2011 (12) TMI 582 - HC - Income Tax

Summary

Issues Involved: Appeal u/s 260(1) of the Income Tax Act, 1961 against rejection of application u/s 5 of the Limitation Act for condonation of delay in filing the appeal for assessment year 1990-91.

Summary:
The appeal was filed against the judgment and order of the Income Tax Appellate Tribunal, Amritsar Camp at Meerut, which had rejected the application seeking condonation of delay in filing the appeal. The appellant had handed over the appeal papers to an advocate, but due to financial constraints, the fee was not paid, resulting in the advocate not filing the appeal. Upon realizing this, a new counsel was engaged who filed the appeal along with an application u/s 5 of the Limitation Act. Both the party's affidavit and the counsel's affidavit remained uncontroverted. It was noted that the appellant would not gain anything from the delay in filing the appeal.

The High Court opined that the delay should have been condoned, as the appellant was not at fault and stood to gain nothing from the delay. Therefore, the Court set aside the Tribunal's order and directed it to decide the appeal on merits. The appeal was allowed, succeeding in favor of the appellant.