Sec. 253(5) of Income Tax Act, 1961— Appeal - Reasons narrated by assessee for delay in filing appeal before Tribunal cannot be simply brushed aside or ignored as no assessee would opt to give away its legal right by deliberately making delay, more so, when he would not gain anything by not filing the appeal.

Facts: Assessee is in appeal before the Tribunal against order of CIT(A)-1. Appeal of assessee is barred by limitation. Registry of Tribunal has pointed out delay of 540 days in filing appeal by assessee before the Tribunal. Subsequently, assessee has filed an application for condonation of delay. In the application, assessee stated that director of assessee-company, who was in-charge of the accounts and taxation matters was hospitalised due to cardiac illness and other related health complication. Because of that, he was to be admitted in the hospital from time to time and he could not attend in day-to-day affairs of the company. The learned counsel for the assessee submitted delay was caused due to reason beyond control of assessee, and therefore, delay may be condoned in the interest of justice, equity and fair play.

Held, that delay in filing the appeal was caused due to major reason being that key person who is looking after the accounts and taxation matters has been hospitalized for cardiac treatment from time to time. This has disconnected him from attending day-to-day work of the assessee-company. To support this fact, assessee has also filed copies of various medical reports and documents from the hospital. The submission of assessee that if adverse order of CIT(A) was remained unchallenged, then it would have cascading effect on the subsequent years also. Reasons narrated by the assessee for delay in filing appeal before the Tribunal cannot be simply brushed aside or ignored. No assessee would opt to give away its legal right by deliberately making delay, more so, when he would not gain anything by not filing the appeal in time, therefore, in the interest of justice and fair play, the delay was condoned. - DEEP MULTIPLEX (P) LTD. V/s DEPUTY CIT - [2020] 205 TTJ 916 (ITAT-AHMEDABAD)