INDIAN VALVE CALCUTTA PVT. LTD.,KOLKATA vs. DCIT, CIR-1(1)., KOLKATA

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ITA 239/KOL/2023Status: DisposedITAT Kolkata18 May 2023AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, stating that the CIT(Appeals) should have adopted a sympathetic view considering the circumstances. The matter was remitted back to the CIT(Appeals) for fresh adjudication on merits.

What were the facts?

The assessee filed an appeal before the CIT(Appeals) after a significant delay, citing the COVID-19 pandemic as the reason. The CIT(Appeals) dismissed the appeal as time-barred, even after considering the exclusion period for COVID.

What were the issues?

Whether the delay in filing the appeal before the CIT(Appeals) should be condoned due to the COVID-19 pandemic, and if the CIT(Appeals) erred in dismissing the appeal on technical grounds without adjudicating on merits.

Which sections of the Income-tax Act were involved?

Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, KOLKATA

Before: Shri Rajpal Yadav, Vice- & Dr. Manish Borad

Per Shri Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi

Indian Valve Calcutta Pvt. Limited dated 27th January, 2023 passed for assessment year 2019-20.

2.

Though the assessee has taken five grounds of appeal, but the first preliminary issue involved in the present appeal is that the ld. CIT(Appeals) has dismissed the appeal of the assessee being time-barred.

3.

It emerges out from the record that return of income was processed by the CPC, Bengaluru under section 143(1) on 07.07.2020. When assessee was able to lay its hand on these details, it filed an appeal on 18.08.2022. The ld. 1st Appellate Authority has observed that if the delay, occurred on account of COVID period, is being condoned on the strength of the Hon’ble Supreme Court decision in the case of Suo Moto Writ (Civil) No. 3 of 2020 alongwith M.A. No. 21 of 2022 and M.A. No. 665 of 2021, then also the period from 15.03.2020 till 30.05.2022 would be excluded, but even thereafter the appeal is time-barred by 80 days. The ld. CIT(Appeals) thereafter did not discuss any aspect regarding occurrence of delay in filing the appeal. In its application for condonation of delay, the assessee has submitted that on account of COVID period, it could not file the appeal well in time. The ld. CIT(Appeals) had never confronted the assessee about this period of 80 days worked out by it. It is pertinent to observe that as per

1.

Indian Valve Calcutta Pvt. Limited the assessee, it was not able to lay its hand on complete details for filing the appeals because of COVID. Considering the order passed under section 143(1) by the Computer Processing Unit without any assistance of the assessee, we deem it appropriate to condone the delay in filing the appeal before the ld. 1st Appellate Authority. It is always imperative upon the Quasi Judicial Authority to adjudicate the issues on merit instead of adopting a hyper technical view - most of the part of delay is contributable to COVID and, therefore, ld. 1st Appellate Authority ought to have adopted a sympathetic view for considering the grounds of appeal raised by the assessee. We set aside the impugned order and remit all the issues to the file of ld. CIT(Appeals) for fresh adjudication.

4.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on May 18th, 2023.

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