If delay in filing appeal is explained, matter must be decided on merits rather than on technicalities:

ITAT dismissed assessee’s appeal on the ground of limitation since it was not convinced by assessee’s explanation in respect of delay of 791 days in filing appeal. The Hon’ble High Court observed that General Manager of the assessee company filed an affidavit stating that grounds of appeal were prepared, signature of the authorised person were obtained and appeal fees were also paid in time. However, for filing the said appeal, grounds of appeal against earlier order of CIT(A) dated 19.08.1994 were required and the same couldn’t be traced since the matter was very old. After continuous follow-up with the Income-tax Department, the same could be obtained and thereafter the appeal came to be filed. In due course, there was a delay of 7941 days in filing the appeal. The Hon’ble High Court was of the view that when cause substantial justice is pitted against technicalities, Courts are reluctant to terminate legal proceedings on technical grounds. Hence, ITAT’s order was reversed and ITAT was directed to decide the same on merits.

[GUJARAT ELECTRICITY BOARD - TAX APPEAL NO.1379 of 2011 - GHC]