TMI Blog2003 (4) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... Departmental Representative for the Revenue and perusing the records carefully. 3. The brief facts of the case are that the assessee has furnished its wealth-tax return late. Therefore, the AO issued a show-cause notice to the assessee seeking its explanation as to why penalty under s. 18(1)(a) be not imposed upon it. After considering the reply of the assessee, the AO levied penalty in all these assessment years. 4. Dissatisfied with the levy of penalty, the assessee filed appeals before the first appellate authority. The CWT(A) observed that the appeals were time-barred by two days. The assessee contended before the first appellate authority that its tax manager has erred in calculating the limitation and this has barred the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sufficient reasons for availing the remedy after expiry of the limitation. Such reasoning should be to the satisfaction of the Court. The expression 'sufficient cause or reason' as provided in sub-s. (2) of s. 23 of WT Act is used in identical position in the Limitation Act and the CPC. Such expression has also been used in other sections of the IT Act such as ss. 249, 253, etc. The expression 'sufficient cause' within the meaning of s. 5 of the Limitation Act as well as similar other provisions, the ambit of exercise of powers thereunder has been subject-matter of consideration before the Hon'ble Supreme Court on various occasions. In the case of State of West Bengal vs. The Administrator, Hawrah Municipality AIR 1972 SC 749, the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the Court. Sec. 5 of the Limitation Act does not say that such discretion can be exercised only if the delay is within certain limit. Length of delay is no matter, acceptability of the explanation is the only criterion. Sometimes delay of the shortest range may be uncondonable due to want of acceptable explanation, whereas in certain other cases, delay of a very long range can be condoned as the explanation thereof is satisfactory. Once the Court accepts the explanation as sufficient, it is the result of positive exercise of discretion and normally the superior Court should not disturb such finding, much less in revisional jurisdiction, unless the exercise of discretion was on wholly untenable grounds or arbitrary or perverse. But i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s after hearing the parties. 3. "Every day's delay must be explained" does not mean that a pedantic approach should be made. Why not every hour's delay, every second's delay. The doctrine must be applied on a rational, common-sense and pregratic manner. 4. 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. 5. There is no presumption that delay is occasioned deliberately or on account of culpable negligence or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact he runs a serious risk. 6. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to such litigant. As observed by the Hon'ble Supreme Court in the case of N. Balakrishnan, the length of delay is no matter. It is the acceptability of the explanation. That is the only criteria before condoning the delay. At the most, for the inaction or a little negligence, the assessee can be burdened with the cost. But his right of hearing of the appeal on merit ought not to be shut. Considering the overall facts and circumstances of the case and in the larger interest of justice, we are of the opinion that these appeals deserve to be allowed. We dondone the delay in filing the appeals before the CWT(A) and restore the matter back to the learned first appellate authority who will decide the appeals of the assessee on merit. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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