A panel of three judges for the B.C. Court of Appeal ruled a miscarriage of justice occurred when Kulvinder Sandhu was convicted in August 2011.
Sandhu was charged with sexual interference and invitation to sexual touching after complaints from a young woman.
The incidents were alleged to have occurred in the 1990s, although the man was not charged until six years after the young woman complained to police.
During the trial, the Crown argued the man's failure to promptly address the allegations of sexual assault showed that he was guilty.
The appeal judges also ruled Monday the trial judge made a mistake by finding the accuser to be credible.