TMI Blog1995 (9) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year 1988-89 declaring an income of Rs. 89,637. As per the return prepared by its Chartered Accountant the income-tax due on the aforesaid income was shown at Rs. 47,061. This was duly paid by the assessee. The assessment for the concerned assessment year, i.e., 1988-89 was finalised at an income of Rs. 2,82,210 raising a demand of Rs. 1,40,149. As per the assessment order which is dated26-9-1989 the penalty proceedings under sections 273 and 271(1)(c) of the Act were also directed to be initiated. The assessee filed an appeal in the office of the learned CIT(A) in Form No. 35 on30-11-1989. Vide letter dated6-11-1990 the CIT(A) required the assessee to furnish the details regarding the tax as paid by the assessee. It was at that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under which the right of appeal is allowed, it should be admitted and decided on merit. To similar effect are the other decisions which include the case of Concord of India Insurance Co. Ltd. v. Smt. Nirmala Devi [1979] 118 ITR 507 (SC) and Manoj Ahuja v. IAC [1984] 150 ITR 696 (Punj. Har.). Furthermore in similar circumstances, the various Benches of the Income-tax Appellate Tribunal have decided the issue in favour of the assessee. These are as under :--- (1)SkipperTowers(P.) Ltd. v. ITO [1986] Taxation 82 (4)-133 ; (2) J.K.K. Natarajah v. ITO [1981] Tax 62 (6A)-5 ; (3) P.K. Patnaik v. ITO 1978 TTJ 5 ; and (4) Kanhaiyalal Goswami v. IT0 1978 TTJ 510. As to the delay in filing the appeal as construed from the date of paying th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant period of time read as under :--- " No appeal under this Chapter shall be admitted unless at the time of filing of the appeal : (a) where a return has been filed by the assessee, the assessee has paid the tax due on the income returned by him ; or (b) where no return has been filed by the assessee, the assessee has paid an amount equal to the amount of advance tax which was payable by him ; Provided that, on an application made by the appellant in this behalf, the Appellate Assistant Commissioner [or as the case may be, the Commissioner (Appeals)] may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of this sub-sections." Thus as per the above provisions which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection ". This is as held by the Madras High Court in the case of Kichchppa v. Ramanujam [1902] 25 ITR 166 (170,171) (DB) (sic). As commonly understood, it would mean which is beyond the control of the party invoking the provision of the section. The test to be applied is that of a reasonable man in normal circumstances. Sufficiency of reason would he in the test whether the same could have been avoided by exercise of due care and attention. Simply putting it there should be no negligence, no inaction or want of bona fides which could be imputable to the party. The good reason on the other hand is something which is akin to what is proper or right or sound. It is near synonymous to the sufficient reason. There could be no good reason which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he shortfall in the payment of tax was on account of bona fide belief on the part of the assessee cannot be faulted. This is evident from the fact that even Assessing Officer took no action for shortfall in payment of tax. In case the assessee intentionally wanted to withhold the tax, it would have been major part of it and not as was the case. We are therefore unable to understand as to how this does not constitute a good and sufficient reason for the exercise of discretion by the learned CIT(A). In the circumstances, we are of the considered view that there existed sufficient and good reason for admission of appeal which should have been decided on merit. 5. The same reasons would also apply for admission of appeal if it is considered a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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