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Facts
The assessee filed an appeal before the CIT(A) with a delay of 686 days. The assessee attributed the delay to the Covid-19 pandemic and relied on the Supreme Court's suo motu judgment extending limitation periods. The CIT(A) dismissed the appeal without condoning the delay.
Held
The Tribunal held that considering the exclusion of the period from March 15, 2020, to February 28, 2022, as per the Supreme Court's order, the effective delay was only 86 days. The Tribunal condoned the delay in the interest of substantial justice.
Key Issues
Whether the delay in filing the appeal before the CIT(A) caused by the Covid-19 pandemic should be condoned in light of the Supreme Court's suo motu order.
Sections Cited
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Income Tax Appellate Tribunal, ‘SMC’ BENCH, BANGALORE
Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY
PER WASEEM AHMED, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee against the order passed by the NFAC, Delhi vide order dated 28/02/2025 in DIN No. ITBA/NFAC/S/250/2024-25/1073810989(1) for the assessment year 2017-18.
This appeal by the assessee is directed against the order of the learned CIT(A). The main issue is whether the delay of 686 days in filing the appeal before the learned CIT(A) deserves to be condoned.
The assessment order was passed on 26 December 2019. The appeal before the learned CIT(A) was filed with a delay of 686 days. The assessee explained that the delay was caused due to the Covid-19 pandemic, which began from March 2020. The assessee relied on the Suo Motu judgment of the Hon’ble Supreme Court extending the limitation period during Covid. However, the learned CIT(A) was not satisfied with the explanation. He dismissed the appeal without condoning the delay.
Being aggrieved by the order of learned CIT-A, the assessee is in appeal before us.
The learned AR submitted that if the period excluded by the Hon’ble Supreme Court judgment in Suo Motu Writ Petition (Civil) No. 3 of 2020 is taken into account, the effective delay is only 86 days. It was prayed that the delay should be condoned in the interest of justice. The ld. AR also submitted that the assessee had a good case on merits and therefore deserved to be heard.
The learned DR opposed the condonation. He submitted that the time limit for filing the appeal had already expired before the commencement of the Covid-19 period. Therefore, the assessee cannot claim the benefit of exclusion of limitation period. Without prejudice, the learned DR submitted that if the delay is condoned, it should be subject to the imposition of costs on the assessee for his negligent conduct.