M/S ZIGMA GLOBAL ENVIRON SOLUTIONS P LTD.,ERODE vs. THE ACIT, CIRCLE-1, ERODE

This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre in Appeal No.CIT(A), Coimbatore-3/10285/2019-20 dated 14.10.2021. The assessment was framed by the ACIT, Circle-1,

At the outset, it is noticed that this appeal is barred by limitation by 213 days and assessee has filed condonation petition. The order of CIT(A) was received by assessee on 14.10.2021 and appeal before Tribunal was actually filed on 14.07.2022. It was contended by the ld.counsel that the Hon’ble Supreme Court in has granted grace period up to 29.05.2022 in Miscellaneous Application No.21 of 2022 vide order dated 10.01.2022 had excluded the limitation period for all statutory purposes from 15.03.2020 to 28.02.2022 with a further grace period of 90 days (29.05.2022). In term of the above, the ld.counsel stated that only delay remains is 46 days and this delay has occurred only due to the reasons that the appeal papers were entrusted to the Accounts Manager Shri S.S. Sivashankara Pandian, who failed to file the appeal within the grace period. When these facts were confronted to ld. Senior DR, he opposed condonation of delay but going through the reasons stated as well as the number of days of delay i.e., after excluding the grace period granted by the Hon’ble Supreme Court is 46 days only.

The only issue in this appeal is that the assessee has filed condonation petition for delay in filing the return of income u/s.119(2)(b) of the Act with the Central Board of Direct Taxes (CBDT) and assessee has filed proof before us, as there was delay in filing of return of income of only 20 minutes as the return of income was filed on 18.10.2016 at 12.20 am instead of time allowed by CBDT upto 17.10.2026. The assessee has given chronology of events in its petition filed before CBDT. The ld.counsel before us stated that the matter can be remitted back to the file of the AO and await the decision of CBDT and thereafter frame assessment whether deduction u/s.80IA of the Act is to be allowed or not. In case the CBDT condones the delay, the AO has to allow deduction u/s.80IA of the Act.

When these facts were confronted to ld. Senior DR, he fairly agreed that matter can be restored back to the file of the AO.

After hearing both the sides and going through the facts, we set aside the order of CIT(A) and that of the AO and remand the AO to await the decision of CBDT on the petition for condonation of delay filed by assessee. The assessee will take up the condonation petition with CBDT and Revenue will also dispose off as early as possible the petition filed by assessee. In term of the above, appeal of the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.