Shortage of manpower and lack of guidance/expertise in taxation, on account of merger of State Bank of Travancore with State Bank of India, would constitute “sufficient cause” for condoning the delay in filing appeal, holds the C bench of the Income Tax Appellate Tribunal, Bangalore.
The ruling was laid in an appeal filed by one of the branches of SBT, which was merged with SBI. The appeal was filed against the order of CIT (A) whereby the appeal filed against levy of fee under Section 234E of the Income Tax Act for the assessment year 2013-14, was dismissed on account of delay of 161 in filing appeal. The plea of the Appellant that the delay occurred due to shortage of manpower and lack of guidance/expertise in taxation due to merger with SBI was rejected by the CIT(A), by stating that it was not convincing.
The ITAT in deciding the matter relied on the decision of the Supreme Court in Collector, Land Acquisition Vs. Mst. Katiji&Ors. 167 ITR 471, wherein it was laid that the “expression “sufficient cause” employed by legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which sub-serves the ends of justice, for that is the life purpose for the existence of the institution of courts”. Thus, in the light of such a decision, ITAT held that the plea of a shortage of staff and lack of expertise/guidance on account of merger constitutes “Sufficient cause” for the delay in filing an appeal before CIT(A). Further, It was observed that in the interest of substantial justice, the CIT(A) should have condoned the delay in filing an appeal.
Accordingly, ITAT condoned the delay of 161 days in filing the appeal and restored the appeal as the same was not disposed on merits by the first appellate authority.
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