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Facts
The assessee filed appeals before the CIT(A) for AY 2008-09 and AY 2017-18, but the appeals were dismissed due to delay in filing. The assessee contended that the delay was covered by the Hon'ble Supreme Court's decision in Suo Motu Writ Petition (Civil) No. 3 of 2020, which excluded certain periods due to the Covid-19 pandemic.
Held
The Tribunal held that the delay in filing both appeals before the CIT(A) should be condoned, citing the Hon'ble Supreme Court's direction to condone delays during the Covid-19 pandemic. Consequently, the CIT(A)'s orders were set aside and the appeals were restored to the CIT(A) for adjudication on merits.
Key Issues
Whether the delay in filing appeals before the CIT(A) during the Covid-19 pandemic period is condonable as per the Hon'ble Supreme Court's directions, and whether the CIT(A) erred in dismissing the appeals without adjudicating on merits.
Sections Cited
143(3), 144C(3), 254, 254(1)
AI-generated summary — verify with the full judgment below
PAN. AABCJ6665J Appellant (RESPONDENT) Assessee Represented by : Sh. Ninad Patade, CA Department Represented by : Sh. Ajeya Kumar Ojha Sr DR Date of Conclusion of hearing : 01.05.2025 Date of Pronouncement of Order : 01.05.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER;
These two appeals by assessee are against separate orders of National Faceless Appeal Centre (NFAC) / CIT(A) both dated 07.11.2024 and for the A.Y. 2008-09 & A.Y. 2017-18 respectively. Both these appeals, were dismissed by ld. CIT(A) by taking view that there was delay in filing the appeals. Certain facts in both the appeals are common, so far as issue of limitation is concerned, therefore, with the consent of parties both the appeals are clubbed, heard together and are decided together to avoid the conflict in decision. For appreciation of facts, facts in A.Y. 2008-09 is treated as lead case.
& 6802/MUM/2024 Jotun India Private Limited 2. Rival submissions of both the parties have been heard and record perused. Learned Authorised Representative (Ld.AR) of the assessee submitted that assessment order was passed under section 143(3) r.w.s. 144C(3) and 254 of the Income Tax Act, 1961 (in short “Act) on 22.09.2021. Assessee filed appeal before ld.CIT(A) on 27.10.2021. Thus, there was a slight delay of seven days. The delay in filing the appeal is neither intentional nor deliberate. September, 2021 was severe Covid-19 period. The Ld. AR of the assessee submitted that time period of delay is covered from the decision of Hon’ble Supreme Court in Suo Moto Writ Petition(Civil) No. 3 of 2020, wherein the time period for taking the recourse of law was excluded from March, 2020 to till May, 2022. Thus, such delay was covered by the decision of Hon’ble Apex Court (supra). The ld. CIT(A) dismissed the appeal without discussion of the facts. The order of ld. CIT(A) may be set-aside with a direction to adjudicate all the grounds of appeal on merits. The ld. AR of the assessee further submits that there was a similar delay of about 95 days in filing appeal before ld CIT(A) for the A.Y. 2017-18, such delay is also covered by the decision of Hon’ble Apex Court in Suo Motu Writ Petition (Civil) No. 3 of 2020. Appeal for AY 2017-18 was also dismissed for the want of delay and without discussion on merit. Thus, order of ld.CIT(A) for AY 2017-18 may also be set-aside with a direction to adjudicate all the grounds of appeal on merits.
3. On the other hand, Learned Senior Departmental Representative (Sr. DR) for the revenue supported the order of ld. CIT(A).
We have considered the rival submissions of both the parties and perused the record carefully. We find that in both the matters there was a delay in filing & 6802/MUM/2024 Jotun India Private Limited the appeal before ld.CIT(A). We find that that relevant period during which assessment orders were passed and the assessee has filed the appeal, was a severe Covid-19 Pandemic, wherein Hon’ble Supreme Court has directed to condone the delay for taking recourse of law before various judicial or quasi judicial forum in Suo Motu Writ Petition (Civil) No. 3 of 2020. Therefore, the delay in filing in both the appeals before ld. CIT(A) is condoned, thereby the order of ld.CIT(A) in both the appeals are set-aside. Considering the fact that ld.CIT(A) has not adjudicated various grounds of appeal, therefore, both the appeals are restored back to the file of ld.CIT(A) for adjudication of grounds of appeal on merits. Needless to say that before passing the order, ld.CIT(A) shall provide reasonable and fair opportunity to the assessee.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.