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2022 (5) TMI 244 - AT - Income TaxCondonation of delay - proof of sufficient cause of delay - CIT(A) dismissing the appeal of the assessee by not condoning the delay of the assessee thereby not deciding the appeal on merit - denial of deduction u/s 10AA - HELD THAT:- The claim of the assessee should not be rejected on the technicalities. The assessee has not filed the appeal before the Ld. CIT(A) within the due time which is explained with reasons but CIT(A) going into the technicalities of the things dismissed the appeal as barred by limitation. In our opinion appeal is a legal right vested in a person who is aggrieved by an order of the lower authority and should not be deprived of the same on technical issues. In cases of MST Katiji & Ors. [1987 (2) TMI 61 - SUPREME COURT] wherein the Apex Court has held that the legislature has conferred power to condone the delay by enacting section 5 of the Limitation Act, 1963 in order to enable the courts to do substantial justice to parties by disposing of matter on merits and the expression “sufficient cause” as provided in Section 5 is adequately elastic to enable the court to apply the law in a meaningful manner so that the ends of justice is served. The court observed that “everyday’s delay must be explained” does not imply a pedantic approach. The doctrine must be applied in a rational, common sense and pragmatic manner. The court held that when substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. In the present case, the assessee is not benefitted in any manner by filing the appeal before the Ld. CIT(A) after the due time. We, accordingly set aside the order of the Ld. CIT(A) .The ground 1 to 5 are allowed. Disallowing the exemption u/s 10AA - As relying on M/S YOKOGAWA INDIA LTD. [2016 (12) TMI 881 - SUPREME COURT], TEI TECHNOLOGIES PVT. LTD. [2012 (9) TMI 47 - DELHI HIGH COURT] and BLACK & VEATCH CONSULTING PVT. LTD. [2012 (4) TMI 450 - BOMBAY HIGH COURT] assessee cannot be denied the legitimate exemption as provided under the Statute citing the technicalities. Accordingly we direct the AO to allow the exemption u/s 10AA of the Act from the business profits of Rs. 6,48,75,288/-. However, since the amount of exemption has not been verified by the AO, we are restoring the issue to the file of AO for the purpose of limited verification of the amount of exemption u/s 10AA of the Act. Needless to say that the deduction has to be allowed after verification.
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