COMMISSIONER OF INCOME TAX(EXEMPTIONS) vs. VIDHYA PRACHAR MANDAL

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TAXAP/256/2018HC GujaratGJHC24018678201802 April 2018Author: HONOURABLE MR. JUSTICE AKIL KURESHI,HONOURABLE MR. JUSTICE B.N. KARIA3 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that it was not inclined to interfere with the ITAT's order, although it did not fully agree with the Tribunal's reasoning. The Court noted that the assessee filed the manual appeal at a time when the deadline for electronic filing had not yet expired, making it doubtful whether electronic filing was the only mode available at that specific moment. The Court observed that once the manual appeal was filed, the assessee had an opportunity to replace it with an electronic appeal, which the Tribunal had directed. This direction, in the Court's view, addressed the Revenue's concern about a manually filed appeal being decided on merits. Essentially, the Tribunal had, in this specific case, extended the time for rectifying the defect of not filing the appeal electronically. The Court concluded that no question of law arose.

What were the facts?

The Revenue is in appeal against an order of the Income Tax Appellate Tribunal (ITAT) dated October 16, 2017. The assessee, Vidhya Prachar Mandal, is a trust. The Department issued a circular on March 1, 2016, making electronic filing of appeals compulsory, with an initial deadline of May 15, 2016. The assessee filed a manual appeal on March 23, 2016, against an assessment order dated February 6, 2016, for assessment year 2013-14. A further circular extended the e-appeal deadline to June 15, 2016. The assessee did not file an e-appeal. The Commissioner of Income Tax (Appeals) dismissed the appeal as defective. The ITAT directed the assessee to file the appeal electronically and for the CIT(A) to decide it on merits. This ITAT order is under challenge.

What were the issues?

1. Whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal was justified in considering it appropriate to enable the assessee to file an appeal electronically before the CIT(A) in accordance with law and direct the CIT(A) to admit the aforesaid appeal for its disposal on merits without appreciating the amendment in Rule 45 of the Income Tax Rules, 1962? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Tribunal erred in granting relief to the assessee on the grounds that it is a trust lacking proper guidance and that no opportunity was granted to the assessee to replace the manual appeal with an electronic filing. The Revenue argues the Tribunal failed to appreciate the amendment in Rule 45 of the Income Tax Rules, 1962.

Which sections of the Income-tax Act were involved?

Rule 45

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/TAXAP/256/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 256 of 2018 ========================================================== COMMISSIONER OF INCOME TAX(EXEMPTIONS) Versus VIDHYA PRACHAR MANDAL ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE B.N. KARIA Date : 02/04/2018

ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 16.10.2017 raising following question for our consideration: “Whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal was justified in considering it appropriate to enable the assessee to file appeal electronically before the CIT(A) in accordance with law and direct the CIT(A) to admit the aforesaid appeal for its disposal on merits without appreciating the amendment in the Rule 45 of the Income Tax Rules, 1962 ?”

Brief facts are as under.

Respondentassessee is a trust registered under the Public Trust Act. Department issued a circular dated 01.03.2016 making it compulsory to file appeals C/TAXAP/256/2018 ORDER against orders of assessment electronically. Time was granted till 15.05.2016 to do so. To challenge an order of assessment dated 06.02.2016 for the assessent year 201314, the assessee filed manual appeal before the Appellate Commissioner on 23.03.2016. By a further circular dated 26.05.2016, time limit for filing Eappeal was extended upto 15.06.2016. Admitted fact is that assessee did not file such Eappeal. The Commissioner of Income Tax (Appeals) dismissed such appeal as defective, upon which, the assessee approached the Tribunal. Tribunal directed the assessee to file appeal electronically and then the Commissioner of Income Tax (Appeals) to decide it on merits. This order of the Tribunal is challenged by the Revenue in the present appeal.

Counsel for the Revenue submitted that the Tribunal erred in giving benefit to the assessee on the ground that it is a Trust and do not have proper guidance and further that no opportunity was granted to the assessee to replace the appeal by electronic filing. C/TAXAP/256/2018 ORDER

In facts of the present case, we are not inclined to interfere, though the reasonings cited by the Tribunal may not be the same as which appeal to us. The record as noted would show that the assessee filed manual appeal at the time when the time for filing electronic appeal was not yet over. In other words, it is doubtful whether at the time when the assessee filed the appeal, only mode of filing appeal was electronic. Once such an appeal was filed, though manually, the assessee had an opportunity to replace it by filing electronic appeal. The Tribunal has also directed the assessee to do so. This would take care of the Revenue's anxiety that the appeal which is only filed manually, would be decided on merits. In essence, effectively the Tribunal has in particular case, extended the time for removing the defect of not filing the appeal electronically.

No question of law arises. Tax Appeal is dismissed. (AKIL KURESHI, J) (B.N. KARIA, J) ANKIT SHAH

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