INCOME TAX ACT, 1961

Section 251

Appeal [CIT(A)] - Condonation of delay - Failure to deduct TDS - Sufficient cause

Assessee was a Government body and against the order passed by AO under section 201(1) and 201(1A), assessee filed an appeal before CIT(A), which was belated. CIT(A) dismissed the appeal on the plea that there was a delay in the filing appeal without any reasonable cause. Assessee stated that office of DRM was not aware whether any order could be passed against it and whether such order was appealable and it came to know that such orders were appealable only when Department pressed for payment of the out-standing demand. Held: 'Sufficient cause' for the purpose of condonation of delay should be interpret¬ed with a view to even-handed justice on the merits in preference to an approach which scuttles a decision on the merits. Further, the power to condone the delay is conferred with a view to enable the courts to do substantial justice to litigants by disposing of cases on the merits. Considering the totality of the facts of the case, delay was to be condoned and matter, remanded to CIT(A) for deciding on the merits after giving due opportunity of hearing to the assessee.

Relied:Motilal Padampat Sugar Mills Co. Ltd. v. State of U. P. (1979) 118 ITR 326 (SC) : 1979 TaxPub(DT) 0848 (SC) Collector, Land Acquisition v. Mst. Katiji (1987) 167 ITR 471 (SC) : 1987 TaxPub(DT) 1279 (SC). Hossana Ministries v. ITO (Exemptions) TC (Appeal) No. 3 of 2017 (Mad. H.C.) Jayvantsinh N. Vaghela v. ITO (2013) 40 taxmann.com 491(Guj).

REFERRED :

FAVOUR : Partly in assessee's favour by way of remand

A.Y. : 2010-11 & 2014-15

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