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Facts
The assessee, a public charitable trust, filed its return for AY 2015-16 declaring an income of Rs. 1,415/-. The CPC made an addition of Rs. 19,32,810/- as voluntary contribution, resulting in a tax demand of Rs. 8,64,190/-. The assessee filed an appeal before the Ld. Addl. CIT(A) with a significant delay.
Held
The Tribunal held that the assessee had sufficient cause for the delay in filing the appeal, attributing it to the Covid-19 pandemic. The Ld. Addl. CIT(A) ought to have admitted the appeal and decided it on merits. The matter was remanded back to the Ld. Addl. CIT(A) to condone the delay and decide on merits.
Key Issues
Whether the delay in filing the appeal should be condoned considering the Covid-19 pandemic, and if so, whether the appeal should be decided on merits.
Sections Cited
143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2015-16 arises out of the orders of Learned Commissioner of Income Tax, Appeal, Addl/JCITA(A)-4, Hyderabad [hereinafter “CIT(A)”] dated 28.03.2025 in the matter of intimation u/s. 143(1) of the Income-tax Act,1961 (hereinafter “the Act”) issued by CPC, Bengaluru on 03.02.2018.
The effective ground of appeal in this case is against dismissing the appeal in limine without condoning the delay by the Ld. CIT(A).
1. 3. The assessee is a public charitable trust and filed its return of income declaring total income of Rs.1,415/-. The CPC in the intimation u/s. 143(1) of the Act has made addition of voluntary contribution received of Rs. 19,32,810/- resulting tax demand of Rs. 8,64,190/-.
Aggrieved, the assessee preferred an appeal before Ld. Addl. CIT(A) with a delay of 2540 days. However, the Ld. Addl. CIT(A) did not condone the delay and dismissed the appeal in limine.
The Ld. Authorized Representative (A.R.) of the assessee submitted that the Ld. Addl. CIT(A) did not properly consider the period of delay attributable to the Covid-19 pandemic, which should have been excluded from the computation of delay in line with the directions of the Hon’ble Supreme Court. The Ld. Counsel further submitted that the CPC made a tax demand of Rs. 8,64,190/-, and that the appeal was dismissed in limine without considering the merits. The Ld. AR, therefore, prayed that the Ld. Addl. CIT(A) be directed to condone the delay and decide the matter on merits in the interest of justice.
We have heard the rival submissions and perused the materials available on record. On perusal of the order of the Ld. Addl. CIT(A), we note that there was a delay in filing the appeal. The assessee has provided an explanation attributing the delay to the Covid-19 pandemic, but the Ld. Addl. CIT(A) did not accept this and dismissed the appeal in limine. After considering the matter, we are of the opinion that there was sufficient cause for not presenting the appeal within the prescribed time. Therefore, the Ld. Addl. CIT(A) ought to have admitted the appeal and adjudicated the matter on merits. Accordingly, we remand the matter back to the file of the Ld. Addl. CIT(A) with a direction to condone the delay and decide the appeal on merits, subject to the payment of costs of Rs. 10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. Addl. CIT(A). Further, the assessee is directed to appear before the Ld. Addl. CIT(A) on the date of hearing without fail and furnish complete details for fresh consideration. In the view of the above, the appeal filed the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 26th day of June, 2025 at Chennai.