ITAT Delhi Restores Appeal as Hyper-Technical View on Delay Defeated Justice

Renu Bala Vs ITO (ITAT Delhi)

The appeal was filed by the assessee against the order dated 13.10.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for Assessment Year 2016–17. The appeal before the Tribunal was delayed by 58 days. The assessee submitted an application supported by an affidavit explaining the reasons for the delay. Upon examination, the Tribunal found the delay to be unintentional and based on bona fide reasons, and accordingly condoned the delay and admitted the appeal.

The assessee contended that the CIT(A) had dismissed the appeal in limine on the ground of limitation, despite the delay of 125 days having been explained. It was argued that the CIT(A) failed to properly appreciate the reasons for the delay and dismissed the appeal without condoning it. The assessee further submitted that there was a prima facie case on merits which warranted consideration.

The Department, on the other hand, argued that the delay of 125 days before the CIT(A) was not supported by sufficient reasons and therefore the dismissal of the appeal was justified.

Upon hearing both sides and reviewing the record, the Tribunal observed that the CIT(A) had adopted a hyper-technical approach in dismissing the appeal solely on limitation grounds. It noted that the assessee had provided reasons for the delay, which were not adequately considered.

The Tribunal relied on judicial precedents of the Supreme Court emphasizing that the expression “sufficient cause” should be interpreted liberally to advance substantial justice. It reiterated that acceptance of explanations for delay should be the rule and refusal an exception, especially where no negligence or lack of bona fides is attributable to the appellant. It further observed that a pedantic approach may result in meritorious matters being dismissed at the threshold.

Considering the facts and legal position, the Tribunal condoned the delay in filing the appeal before the CIT(A) and restored the matter to the CIT(A) for adjudication on merits, after providing reasonable opportunity to the assessee. The impugned order was set aside and the appeal was allowed for statistical purposes.

FULL TEXT OF THE ORDER OF ITAT DELHI

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 13.10.2025, for Assessment Year 2016-17

2. The appeal is time barred by 58 days. The assessee has filed an application supported by an affidavit citing reasons causing delay in filing of appeal. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional, the delay has been caused for the reasons stated in petition which appears to be bonafide. Thus, delay of 58 days in filing of appeal is condoned and appeal is admitted for decision on merits.

3. Shri Mukesh Kumar Jain, appearing on behalf of the assessee submits that the CIT(A) has dismissed appeal of the assessee in limine on the ground of limitation. He submitted that admittedly there was delay of 125 days in filing appeal before the CIT(A). The assessee had explained the reasons for delay in filing of appeal before the First Appellate Authority. The CIT(A) without appreciating the fact has dismissed appeal of the assessee in limine without condoning the delay. The ld. AR submits that the assessee has prima facie good case on merits, if an opportunity is granted, the assessee would be able to show merits in her case.

4. Per contra, Shri Manoj Kumar representing the department opposed the appeal of the assessee. The ld. DR submits that the appeal was time barred by 125 days before the CIT(A), the assessee failed to give sufficient reasons for delay in filing of appeal. Hence, the appeal was rightly dismissed by the CIT(A).

5. Both sides heard, orders of the authorities below examined. The CIT(A) has dismissed appeal of the assessee in limine on the ground of limitation. The appeal of assessee was time barred by 125 days before the First Appellate Authority. The assessee had furnished reasons for delay in filing of appeal. The CIT(A) taking a hyper technical view of the limitation provisions in filing the appeal, dismissed appeal of the assessee.

6. The Hon’ble Apex Court in an unequivocal manner has repeatedly held that acceptance of reason given by the appellant/petitioner explaining delay should be the rule and refusal an exception. By taking a pedantic and hyper technical view the explanation furnished should not be rejected, causing loss and irreparable injury to the party against whom the lis terminates. The expression “sufficient cause” should be liberally construed so as to sub-serve the ends of justice.

6.1 The Hon’ble Apex Court in the case of Collector Land Acquisition vs. Mst. Katiji & Ors. 167 ITR 471 has held that liberal approach should be adopted while dealing with an application praying for condonation of delay. Refusing to condone delay can result in meritorious matter being thrown out at the very threshold and cause of justice being defeated. Pedantic and hyper technical approach should not be adopted while dealing with an application for condonation of delay.

6.2 The Hon’ble Apex Court in the case of Ram Nath Sao @ Ram Nath Sahu & Others vs Gobardhan Sao and Others, 2002 SCC (3) 195/2002 SCR (2) 77 has held that the expression “sufficient cause” within the meaning of Section 5 of the Limitation Act or Order 22 Rule 9 of Civil Procedure Code or any other similar provision should receive a liberal construction so as to advance substantial justice. The courts should not proceed with the tendency of finding fault with cause shown and reject the petition by a slipshod order in over jubilation of disposal drive. Acceptance of explanation furnished should be the rule and refusal, an exception, more so when no negligence or inaction or want of bonafide can be imputed to the defaulting party.

7. After taking into consideration facts of the case and the law expounded by Hon’ble Supreme Court of India in dealing with explanations for condonation of delay, the delay in filing of appeal before the CIT(A) is condoned. The appeal is restored to the CIT(A) for adjudication on merits, after allowing assessee reasonable opportunity to make submissions, in accordance with law.

8. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open court on Thursday the 16^th day of April, 2026.