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Judgment
Suhas Chandra Sen, J.—The Tribunal has referred the following question of law to this court u/s 256(1) of the Income Tax Act, 1961 ("the Act") :
"Whether, on the facts and in the circumstances of the case, there was sufficient and reasonable cause for condoning the delay in filing the appeals by the assessee before the Appellate Assistant Commissioner of Income Tax, A-IV Range, Calcutta ?"
The reference is pending since 1979. No paper book has been filed even up to this day. It appears that the only dispute is about the condonation of delay in preferring the appeals before the Appellate Assistant Commissioner. The Tribunal held that there was sufficient ground for condoning the delay in filing the appeals for the years under consideration by the assessee before the Appellate Assistant Commissioner.
The Tribunal has gone into the question in depth and has held that whether certain expenditure was revenue or capital was in dispute. The assessee had accepted the decision of the Income Tax Officer for the time being. Thereafter, there was a judgment of the Supreme Court on the controversy raised and because of that judgment, the assessee found that it had a good reason to prefer an appeal-That being the position, we fail to see how it can be said that discretion was wrongly exercised in the matter by the Appellate Assistant Commissioner. The Tribunal has merely agreed with the Appellate Assistant Commissioner in the matter of condonation of delay.
In our view, the question raised must be answered in the affirmative and in favour of the assessee.
There will be no order as to costs. Filing of paper book is dispensed with.
Bhagabati Prasad Banerjee, J.
I agree.