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TMI Blog2012 (7) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... y to make payment of tax on the admitted income before deciding the appeal. 3. At the outset, we note that this appeal is filed on 15.12.2011 and there is a delay of 412 days (incorrectly taken as 668 days by the Registry reckoning the delay from wrong date of filing of the appeal instead of taking the correct date of filing of the appeal as 15.12.2011) in filing of this appeal by the assessee before this Tribunal. The assessee has filed a petition seeking condonation of delay, which is also accompanied by a sworn affidavit. It is stated therein that the assessee is an old woman of 60 years of age, having least acquaintance with tax matters, for which she is dependent on professional advice of a Chartered Accountant. It is submitted that the said Chartered Accountant, who was served with the impugned order of the CIT(A) dated 30.8.2010 dismissing the appeal of the assessee in limine for non-payment of admitted tax on the returned income, did not even inform that fact, not to speak of guiding her as to the need for filing further appeal before the Tribunal. It was only when the State Bank of India, Karvan Branch issued a letter dated 17.11.2011 to the Assessing Officer in complianc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered. In our opinion, the reasons advanced by the assessee in filing of the appeal belatedly as explained in the upper part of this order are found to be bona fide and the assessee having reasonable cause for not filing the appeal in time. Hence, taking into consideration the overall facts and circumstances of the case, we are of the opinion that the delay in filing this appeal deserves to be condoned and, accordingly the delay is condoned and the appeal is admitted to decide the issues on merit. 5. Further we make it clear that there is no hard and fast rule which can be laid down in the matter of condonation of delay and Courts should adopt a pragmatic approach and discretion on the facts of each case keeping in mind that in considering the expression 'sufficient cause' the principles of advancing substantial justice is of prime importance and the expression 'sufficient cause' should receive a liberal construction. A liberal view ought to be taken in terms of delay of few days. On careful consideration of the matter, we are satisfied with the reasons for the delay in filing of the present appeal. We accordingly condone the delay and proceed to dispose of the appeal on merits. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon the jurisdiction of the Tribunal whether these appeals can be restored back to the CIT(A) or not, it is salutary to take note of sub-sections (3) and (4) of section 249 and sub-section (1) of section 254 because these provisions have direct bearing on the controversy : Section 249(3) : "The CIT(A) may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting it within that period." Section 249(4) : "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, in a case filling under Clause (b) and on an application made by the appellant in this behalf, the CIT(A) may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of that clause." Section 254(1) : "The Tribunal may, after giving both the parties to the appeal an oppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding the power of remand to the authority competent to make the requisite order in accordance with law in such a case even though the Tribunal itself could not have made the order enhancing the amount of penalty. The power of the AAC under Section 251(1)(b) includes the power even to enhance the penalty subject to the requirement of Subsection (2) of Section 251 of a reasonable opportunity of showing cause against such enhancement being given to the appellant assessed. This could have been done in the assessee's appeal itself filed in the present case. The power of the Tribunal to make an order of remand in such a situation is well-settled in Hukumchand Mills Ltd. v. CIT [1967] 63 ITR 232 (SC)." 10. On plain reading of Sub-section (3) of Section 249 shall reveal that if the assessee showed sufficient reasons for late filing of his appeals, then such delay can be condoned and controversy would be silenced on merit. Similarly, for the sake of explanation, if an assessee did not have sufficient funds for complying with the requirement of Section 249(4) and has not filed the appeal within the time provided under Section 249(2), subsequent to expiry of limitation, he made compliance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary technicality, grammatical pedantry or logical prevarication. It supplies the omissions of a formulated law. 13. The adherence to principle of natural justice as recognized by all civilized states is of supreme importance when a quasi-judicial body embarks on determining disputes between the parties. 14. From the judgment of Hon'ble Delhi High Court, it is clear that whenever legal justice fails to achieve the solemn purpose of securing justice then natural justice is called in aid of legal justice. From the details submitted by the assessee in the paper book as extracted by us, it reveals that the assessee kept on making the payment of tax along with interest in instalments. Had the assessee was having sufficient fund with him, then no prudent businessman would allow to swell the liability of interest in such a way. For example, the total tax required to be paid by the assessee in asst. yr. 1991-92 on the agreed return along with interest was Rs. 17,30,273. Against it, by the end of December, 1997, assessee has paid Rs. 26,09,843. Thus, it clearly indicates that assessee was not having sufficient funds at the relevant time for compliance of Section 249(4) which rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isfied, on the facts and circumstances of the case, that there was sufficient cause for the assessee's failure to comply with Section 249(4) of the Act and in remitting the cases to the first appellate forum for disposal on merits. Accordingly, the question referred is answered in the affirmative." 15. Thus, we fortify our view by the above decision of the Hon'ble High Court. 16. The next issue for our adjudication is whether sufficient reasons exist for curing defect after expiry of limitation provided under Section 249(2) of the Act. Since, we have held in the upper part of the order that appeal filed in violation of Section 249(4) would be termed as a defective one and the moment defect is cured then those can be disposed of on merit subject to limitation. The Courts and the quasi-judicial bodies are empowered to condone the delay if a litigant satisfies the Court that there were sufficient reasons for availing the remedy after expiry of limitation. Such reasoning should be to the satisfaction of the Court. The expression "sufficient cause or reason", as provided in Sub-section (3) of Section 249 of the Act, is used in identical position in a number of statutes and the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X
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