APPVIEWX PRIVATE LIMITED,COIMBATORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1, COIMBATORE, COIMBATORE

Brief facts of the case are that the assessee instituted appeal before the ld.CIT(A) against the order passed u/s 143(1) of the Act by AO, CPC for AY 2018-19 disallowing deduction u/s 10AA of the Act amounting to Rs.3,58,97,700/- for the reason that the assesse has not filed the Form 56 within due date. On appeal to CIT(A), the ld. CIT(A) dismissed the appeal in limine as there was enormous delay of 820 days in filing appeal. Aggrieved, assessee is in appeal before us.

Before the ld. Counsel for assessee submitted that the delay of 820 in filing appeal had arisen due to delay in serving the intimation order u/s 143(1) of the Act by the revenue. He further, prayed that the appeal may be remanded back to the file of the CIT(A) to decide the appeal on merits after condoning the delay. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal.

Though we some extent concur with the submissions of Ld.DR Mr. Bipin C.N., CIT however, keeping in mind the substantial justice, grant one more opportunity to the assesee to prosecute the appeal on merits. We also find that the AO, CPC has disallowed the deduction u/s 10AA of the Act amounting to Rs.3,58,97,700/- for the reason that the assesse has not filed the Form 56 within due date. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for hearing on merits subject to cost of Rs.50,000/- (Rupees fifty thousand) which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The Page - 2 - of 3 proof of the same will be furnished by the Assessee before Ld.CIT(A) whose shall proceed for hearing the appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law.