TMI Blog2022 (4) TMI 1534X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - IT(IT)A No. 607/Bang/21, 608/Bang/21 - - - Dated:- 5-4-2022 - Shri Chandra Poojari, AM And Shri George George K, JM For the Appellant : Shri Ravi Shankar, Adv. For the Respondent : Smt. Priyadarshini Basaganni, Addl.CIT ORDER PER CHANDRA POOJARI, A.M: These two appeals filed by the assessee are directed against the different orders of CIT(A)-12, Bengaluru having common dated 22-09-2021, wherein the CIT(A) confirmed the levy of penalty u/s.271(1)(c) of the Income Tax Act [Act] at ₹ 13,19,400/- and levy of penalty u/s.271F of the Act at ₹ 5,000/-. In these cases, the assessment order was passed ex-parte vide order dt.18-12-2018 latter, the penalty order also passed ex-parte u/s.271(1)(c) and u/s.271F of the Act on 18-12-2018. Consequent to this, the assessee filed appeal before the CIT(A) against these two penalty orders. The appeal against 271(1)(c) was filed before the CIT(A) with the delay of 591 days and the appeal against the order of AO u/s.271 was filed with a d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat a cause would be decided on merits 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 in a rational, commonsense and pragmatic manner. (4) When substantial justice and technical consideration are pitted against each other, the 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 nondeliberate 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 must be grasped that the judiciary is respected not on account of its power to legalise injustice on technical grounds but because it is capable of removing injustice and is expected to do so. 3.1. When substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber. 3.3. The Madras High Court in the case of Sreenivas Charitable Trust (supra) held that no hard and fast rule can be laid down in the matter of condonation of delay and the Court should adopt a pragmatic approach and the Court should exercise their discretion on the facts of each case keeping in mind that in construing the expression sufficient cause the principle of advancing substantial justice is of prime importance and the expression sufficient cause should receive a liberal construction. Therefore, this Judgment of the Madras High Court (supra) clearly says that in order to advance substantial justice which is of prime importance, the expression sufficient cause should receive a liberal construction. In this case, the issue on merit regarding granting of deduction u/s. 80IB was covered in favour of the assessee by the Judgment of the Madras High Court. Therefore, for the purpose of advancing substantial justice which is of prime importance in the administration of justice, the expression sufficient cause should receive a liberal construction. In our opinion, this Judgment of the Madras High Court is also squarely applicable to the facts of this case. A similar v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 963 in order to enable the courts to do substantial justice to parties by disposing of matters on merits. The expression sufficient cause employed by the legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice, for that is the life-purpose for the existence of the institution of courts. The learned Judges emphasized on adoption of a liberal approach while dealing with the applications for condonation of delay as ordinarily a litigant does not stand to benefit by lodging an appeal late and refusal to condone delay can result in a meritorious matter being thrown out at the very threshold and the cause of justice being defeated. It was stressed that there should not be a pedantic approach but the doctrine that is to be kept in mind is that the matter has to be dealt with in a rational commonsense pragmatic manner and cause of substantial justice deserves to be preferred over the technical considerations. It was also ruled that there is no presumption that delay is occasioned deliberately or on account of culpable negligence and that the courts are not supposed to legalise injustice on technical grounds as it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation prescribes a period within which legal remedy can be availed for redress of the legal injury. At the same time, the courts are bestowed with the power to condone the delay, if sufficient cause is shown for not availing the remedy within the stipulated time. Thereafter, the learned Judges proceeded to state that this Court has justifiably advocated adoption of liberal approach in condoning the delay of short duration and a stricter approach where the delay is inordinate. (d) In Improvement Trust, Ludhiana v. Ujagar Singh and others(2010)(6 SCC 786), it has been held that while considering an application for condonation of delay no straitjacket formula is prescribed to come to the conclusion if sufficient and good grounds have been made out or not. It has been further stated therein that each case has to be weighed from its facts and the circumstances in which the party acts and behaves. 3.6. The principles that emanate from the above said decisions are that, in the matter of condonation of delay in filing appeals beyond the limitation period, the courts are empowered to condone the delay, provided the litigant is able to demonstrate that there was sufficient cause in p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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