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Facts
The assessee's appeal to the CIT(A) for AY 2018-19, filed on 27.05.2021 against an assessment order dated 22.03.2021, was rejected as time-barred due to an approximately 32-day delay, without a condonation application. The assessee contended that the appeal was filed within the extended limitation period provided by CBDT Circular No. 8 of 2021.
Held
The ITAT observed that the normal appeal due date of 21.04.2021 fell within the period extended by CBDT Circular No. 8 of 2021 to 31.05.2021. As the assessee filed the appeal on 27.05.2021, it was considered timely. The CIT(A)'s order rejecting the appeal on limitation grounds was set aside, and the case was remanded to the CIT(A) for adjudication on merits.
Key Issues
Whether the CIT(A) was justified in rejecting the assessee's appeal as time-barred, considering the extended limitation period for filing appeals provided by CBDT Circular No. 8 of 2021 due to the pandemic.
Sections Cited
249(2), 143(3), 119, Chapter XX
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Income Tax Appellate Tribunal, MUMBAI BENCH “H (SMC
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
ORDER
PER OM PRAKASH KANT, AM
This appeal by the assessee is directed against order dated 07.11.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2018-19, raising following grounds:
1. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) erred in not admitting the appellant's appeal filed on 27.05.2021 on the ground that the said appeal was not filed within 27.05.2021 on the ground that the said appeal was not filed within 27.05.2021 on the ground that the said appeal was not filed within the prescribed time as provided in section 249(2) of the Act. The the prescribed time as provided in section 249(2) of the Act. The the prescribed time as provided in section 249(2) of the Act. The appellant submits that the Ld. CIT(A) failed to appreciate that appellant submits that the Ld. CIT(A) failed to appreciate that appellant submits that the Ld. CIT(A) failed to appreciate that the time limit to file the said appeal stood extended up to 31.05.2021 time limit to file the said appeal stood extended up to 31.05.2021 time limit to file the said appeal stood extended up to 31.05.2021 vide CBDT's Circular No.8 of 2021 and hence, there was no delay in vide CBDT's Circular No.8 of 2021 and hence, there was no delay in vide CBDT's Circular No.8 of 2021 and hence, there was no delay in filing of appeal. Your appellant, therefore, prays that the appeal be filing of appeal. Your appellant, therefore, prays that the appeal be filing of appeal. Your appellant, therefore, prays that the appeal be restored to the file of the Ld. CIT(A) for adju restored to the file of the Ld. CIT(A) for adjudication on its merits. dication on its merits.
2. On the facts and in the circumstances of the case, and in law, the 2. On the facts and in the circumstances of the case, and in law, the 2. On the facts and in the circumstances of the case, and in law, the appellant submits that disallowance of its claim for deduction u/s. appellant submits that disallowance of its claim for deduction u/s. appellant submits that disallowance of its claim for deduction u/s. 80P of the Act is unjustified. The appellant, therefore, prays that 80P of the Act is unjustified. The appellant, therefore, prays that 80P of the Act is unjustified. The appellant, therefore, prays that deduction u/s. 80P be deduction u/s. 80P be allowed to it.
At the outset, the Ld. Counsel for the assessee submitted that At the outset, the Ld. Counsel for the assessee submitted that At the outset, the Ld. Counsel for the assessee submitted that this appeal has been filed with a delay of 38 days. He submitted this appeal has been filed with a delay of 38 days. this appeal has been filed with a delay of 38 days. that the person authorized to file appeal that the person authorized to file appeal was being senior citizen being senior citizen and was away from head quarter due to ill healt head quarter due to ill health, could not file the h, could not file the appeal on time. In view of reasons explained, we found that there In view of reasons explained, we found that there In view of reasons explained, we found that there was a sufficient cause for delay in filing the appeal and accordingly was a sufficient cause for delay in filing the appeal and accordingly was a sufficient cause for delay in filing the appeal and accordingly delay of 38 days in filing this appeal delay of 38 days in filing this appeal was condoned and appeal was condoned and appeal was admitted for adjudication. admitted for adjudication.
We have heard rival submissions of the parties and perused We have heard rival submissions of the parties and perused We have heard rival submissions of the parties and perused the relevant materials on record. the relevant materials on record. The learned CIT(A), in the The learned CIT(A), in the impugned order, declined to admit the assessee’s appeal on the impugned order, declined to admit the assessee’s appeal on the impugned order, declined to admit the assessee’s appeal on the ground that the same had been filed with a delay of approximately ground that the same had been filed with a delay of approximately ground that the same had been filed with a delay of approximately 32 days, , , without without without any any any accompanying accompanying accompanying application application application seeking seeking seeking condonation thereof. The relevant observations of the learned CIT(A) condonation thereof. The relevant observations of the learned CIT(A) condonation thereof. The relevant observations of the learned CIT(A) are as under:
“2. On perusal of form 35, it is seen that the appeal has been 2. On perusal of form 35, it is seen that the appeal has been 2. On perusal of form 35, it is seen that the appeal has been filed on 27.05.2021. However the order u/s 143(3) of the Act has filed on 27.05.2021. However the order u/s 143(3) of the Act has filed on 27.05.2021. However the order u/s 143(3) of the Act has been passed on 22.03.2021 and the appellant itself in form 35 been passed on 22.03.2021 and the appellant itself in form 35 been passed on 22.03.2021 and the appellant itself in form 35 has mentioned that order was received on 22.03.2021 itself. The has mentioned that order was received on 22.03.2021 itself. The has mentioned that order was received on 22.03.2021 itself. The appellant was required to file appeal within 30 days as provided appellant was required to file appeal within 30 days as provided appellant was required to file appeal within 30 days as provided vide section 249(2) on receipt of order u/s 143(3). However, the vide section 249(2) on receipt of order u/s 143(3). However, the vide section 249(2) on receipt of order u/s 143(3). However, the appellant has filed appeal after 30 days of the receipt of order. appellant has filed appeal after 30 days of the receipt of order. appellant has filed appeal after 30 days of the receipt of order. Therefore, it is clear that there is delay in filing of a Therefore, it is clear that there is delay in filing of a Therefore, it is clear that there is delay in filing of appeal on appellant’s part. appellant’s part.
3. Further, it is also noticed that the appellant in form 35 has 3. Further, it is also noticed that the appellant in form 35 has 3. Further, it is also noticed that the appellant in form 35 has mentioned that there is no delay in filing of appeal which is not mentioned that there is no delay in filing of appeal which is not mentioned that there is no delay in filing of appeal which is not true as vide facts discussed in para 2, it is clear that there is true as vide facts discussed in para 2, it is clear that there is true as vide facts discussed in para 2, it is clear that there is delay in filing of appeal on delay in filing of appeal on appellant’s part. Since there is delay appellant’s part. Since there is delay in filing of appeal and the appellant has not given any reason for in filing of appeal and the appellant has not given any reason for in filing of appeal and the appellant has not given any reason for delay nor requested to condonation of the same, therefore, I am delay nor requested to condonation of the same, therefore, I am delay nor requested to condonation of the same, therefore, I am not satisfied that the appellate had sufficient cause for not not satisfied that the appellate had sufficient cause for not not satisfied that the appellate had sufficient cause for not presenting the appea presenting the appeal within the specified period. Hence, since, l within the specified period. Hence, since, appeal was not filed within prescribed time as provided in the appeal was not filed within prescribed time as provided in the appeal was not filed within prescribed time as provided in the section 249(2) of the IT Act, the same is not admitted. section 249(2) of the IT Act, the same is not admitted.” ” 3.1 Before us, however, learned counsel for the assessee has Before us, however, learned counsel for the assessee has Before us, however, learned counsel for the assessee has brought to our attention C brought to our attention CBDT Circular No. 8 of 2021 [F. No. BDT Circular No. 8 of 2021 [F. No. 225/49/2021/ITA-II], dated 30.04.2021, issued in exercise of II], dated 30.04.2021, issued in exercise of II], dated 30.04.2021, issued in exercise of powers under Section 119 of the Act. The said circular, issued in powers under Section 119 of the Act. The said circular, issued in powers under Section 119 of the Act. The said circular, issued in light of the prevailing pandemic situation, inter alia, extended the light of the prevailing pandemic situation, inter alia, extended the light of the prevailing pandemic situation, inter alia, extended the time limit for filing app time limit for filing appeals before the CIT(A) under Chapter XX of eals before the CIT(A) under Chapter XX of the Act. The clause (a) of the Circular specifically provides that the Act. The clause (a) of the Circular specifically provides that the Act. The clause (a) of the Circular specifically provides that where the last date for filing an appeal under the relevant where the last date for filing an appeal under the relevant where the last date for filing an appeal under the relevant provisions falls on or after 1st April 2021, such appeal may be filed provisions falls on or after 1st April 2021, such appeal may be filed provisions falls on or after 1st April 2021, such appeal may be filed either within the time prescribed under the Act or by 31st May e time prescribed under the Act or by 31st May e time prescribed under the Act or by 31st May 2021, whichever is later. 2021, whichever is later. The relevant circular is reproduced as The relevant circular is reproduced as under:
CIRCULAR NO. 8 OF 2021 [F. NO.225/49/2021/1T A-II], DATED 30 CIRCULAR NO. 8 OF 2021 [F. NO.225/49/2021/1T A II], DATED 30-4-2021 In view of severe pandemic, the Central Board of Direct Taxes, in exercise of its powers In view of severe pandemic, the Central Board of Direct Taxes, in exe In view of severe pandemic, the Central Board of Direct Taxes, in exe under section 119 of the Income under section 119 of the Income-tax Act, 1961, provides following relaxation in respect of tax Act, 1961, provides following relaxation in respect of Income-tax compliances by the taxpayers: tax compliances by the taxpayers: (a) Appeal to Commissioner (Appeals) under Chapter XX of the Income Appeal to Commissioner (Appeals) under Chapter XX of the Income-tax Act, Appeal to Commissioner (Appeals) under Chapter XX of the Income 1961 for which the last date of filing under that Section is 1st April 2021 or 1961 for which the last d ate of filing under that Section is 1st April 2021 or thereafter, may be filed within the time provided under that Section or by 31st thereafter, may be filed within the time provided under that Section or by 31st thereafter, may be filed within the time provided under that Section or by 31st May 2021, whichever is later; May 2021, whichever is later; (b) Objections to Dispute Resolution Panel (DRP) under section 144C of the Objections to Dispute Resolution Panel (DRP) under section 144C of the Objections to Dispute Resolution Panel (DRP) under section 144C of the Income-tax Act, 1961, for which the last date of filing under that Section is 1st Act, 1961, for which the last date of filing under that Section is 1st Act, 1961, for which the last date of filing under that Section is 1st April 2021 or thereafter, may be filed within the time provided under that April 2021 or thereafter, may be filed within the time provided under that April 2021 or thereafter, may be filed within the time provided under that Section or by 31st May 2021, whichever is later; Section or by 31st May 2021, whichever is later; (c) Income-tax return in response to notice under section tax return in response to notice under section 148 of the Income 148 of the Income-tax Act, 1961, for which the last date of filing of return of income under the said Act, 1961, for which the last date of filing of return of income under the said Act, 1961, for which the last date of filing of return of income under the said notice is 1st April 2021 or thereafter, may be filed within the time allowed notice is 1st April 2021 or thereafter, may be filed within the time allowed notice is 1st April 2021 or thereafter, may be filed within the time allowed under that notice or by 31st May 2021, whichever is later; under that notice or by 31st May 2021, whichever is later; under that notice or by 31st May 2021, whichever is later; (d) Filing of belated return under sub elated return under sub-section (4) and revised return under sub section (4) and revised return under sub- section (5) of Section 139 of the Income-tax Act, 1961 for Assessment Year section (5) of Section 139 of the Income tax Act, 1961 for Assessment Year 2020-21, which was required to be filed on or before 31st March 2021, may 21, which was required to be filed on or before 31st March 2021, may 21, which was required to be filed on or before 31st March 2021, may be filed on or before 31st May 2021; be filed on or before 31st May 2021; (e) Payment of tax deducted under section 194 Payment of tax deducted under section 194-IA, Section 194 IA, Section 194-IB and Section 194M of the Income-tax Act, 1961 and filing of challan-cum 194M of the Income cum-statement for such tax deducted, which are required to be paid and furnished by 30th April 2021 tax deducted, which are required to be paid and furnished by 30th April 2021 tax deducted, which are required to be paid and furnished by 30th April 2021 under Rule 30 of the Income-tax Rules, 1962, may be paid and furnished on under Rule 30 of the Incom tax Rules, 1962, may be paid and furnished on or before 31st May 2021; or before 31st May 2021; (f) Statement in Form No. 61, containing particulars of declarations received in Statement in Form No. 61, containing particulars of declarations received in Statement in Form No. 61, containing particulars of declarations received in Form No. 60, which is due to be furnished on or before 30th April 2021, may Form No. 60, which is due to be furnished on or before 30th April 2021, may Form No. 60, which is due to be furnished on or before 30th April 2021, may be furnished on or before 31st May 2021. be furnished on or 3.2 In the present case, the assessment order under Section In the present case, the assessment order under Section In the present case, the assessment order under Section 143(3) was admittedly served on 22.03.2021. Accordingly, the due 143(3) was admittedly served on 22.03.2021. Accordingly, the due 143(3) was admittedly served on 22.03.2021. Accordingly, the due date for filing the appeal under normal circumstances was date for filing the appeal under normal circumstances was date for filing the appeal under normal circumstances was 21.04.2021. However, in view of the relaxation granted by the 21.04.2021. However, in view of the relaxation gra 21.04.2021. However, in view of the relaxation gra above-referred circular, the time for filing the appeal stood extended referred circular, the time for filing the appeal stood extended referred circular, the time for filing the appeal stood extended up to 31.05.2021. The assessee filed the appeal on 27.05.2021, up to 31.05.2021. The assessee filed the appeal on 27.05.2021, up to 31.05.2021. The assessee filed the appeal on 27.05.2021, which is clearly within the extended limitation period as per the which is clearly within the extended limitation period as per the which is clearly within the extended limitation period as per the CBDT circular.
3.3 In light of the foregoin In light of the foregoing, the rejection of the appeal on the g, the rejection of the appeal on the ground of limitation by the learned CIT(A) is unsustainable. The ground of limitation by the learned CIT(A) is unsustainable. The ground of limitation by the learned CIT(A) is unsustainable. The impugned order, to the extent it declines to admit the appeal on the impugned order, to the extent it declines to admit the appeal on the impugned order, to the extent it declines to admit the appeal on the basis of delay, is accordingly set aside. The matter is remanded to basis of delay, is accordingly set aside. The matter is remanded to basis of delay, is accordingly set aside. The matter is remanded to the file of the learned CIT(A) with a direction to admit the appeal as learned CIT(A) with a direction to admit the appeal as learned CIT(A) with a direction to admit the appeal as having been filed within limitation and to adjudicate the same on having been filed within limitation and to adjudicate the same on having been filed within limitation and to adjudicate the same on merits in accordance with law. merits in accordance with law. The ground of appeal of the assessee The ground of appeal of the assessee is accordingly allowed. is accordingly allowed.
In the result, the appeal of the assess In the result, the appeal of the assessee is allowed for ee is allowed for statistical purposes.