2022 (4) TMI 1534 - AT - Income Tax

Condonation of delay in filing appeals beyond the limitation period - sufficient cause of delay - whether delay was excessive or inordinate? - Levy of penalty u/s 271(1)(c) [Delay of 591 days] and levy of penalty u/s.271F[ Delay of 775 days] - HELD THAT:- Under the scheme of Constitution, the Government cannot retain even a single pie of the individual citizen as tax, when it is not authorised by an authority of law. Therefore, if we refuse to condone the delay, that would amount to legalise an illegal and unconstitutional order passed by the lower authority. Therefore, in our opinion, by preferring the substantial justice, the delay has to be condoned.

Question of condonation of delay is a factual matter and the result would depend upon the facts of the case and the cause shown by the assessee for the delay. Generally delays in preferring appeals are required to be condoned in the interest of justice, where no gross negligence or deliberate inaction or lack of bona fides is imputable to the party seeking condonation of the delay.

As assessees have shown sufficient cause for the delay in filing the appeals before the Tribunal - Assessee’s appeals are treated as partly allowed for statistical purposes.