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Facts
The assessee, engaged in manufacturing auto parts, was selected under CASS for assessment year 2020-21. The AO disallowed Rs. 43,25,000/- u/s 80G for CSR expenditure. The CIT(A) dismissed the appeal as time-barred.
Held
The Tribunal held that dismissing the appeal solely on grounds of delay without proper service of the assessment order is not justified. The AO must follow strict provisions of Section 282 for service. The delay was condoned.
Key Issues
Whether dismissing an appeal as time-barred without proper service of assessment order is justified, and whether the delay in filing the appeal should be condoned.
Sections Cited
143(2), 143(3), 144B, 80G, 143(1), 282
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & SHRI HON’BLE AMITABH SHUKLA
आदेश / O R D E R
PER MANU KUMAR GIRI (Judicial Member):
The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [CIT(A)] dated 13.12.2024 for Assessment Year 2020-21.
Brief facts of the case are as under: The assessee is engaged in the business of manufacture of parts and accessories of motor vehicles and engines. For the through CASS. Notice under section 143(2) was issued and served electronically. In response to the notice sent through e-assessment ITBA module, the assessee submitted the required documents online from time to time. After verification of documents filed by the assessee, the assessing officer (‘AO’ in short) completed the assessment u/s 143(3) r.w.s 144B by order dated 23.09.2022. Further, while completing the assessment the AO disallowed Rs.43,25,000/- u/s 80G claimed out of the expenditure made on CSR activities.
Aggrieved, assessee challenged the order of the assessment before the CIT(A), who did not admit the appeal and dismissed the appeal of the assessee in limine as the same is time barred by 52 days. He did not condone the delay in filing the appeal Now assessee is in appeal before us.
Before us, the ld. counsel submitted that intimation order u/s 143(1) was not yet received by the assessee. He further submitted that the assessment order dated 23.09.2022 is neither served upon the assessee by email nor intimated through message (SMS). The assessment was uploaded in the Income Tax Portal without any assessment order late which caused the delay.
Per contra, ld.DR relied upon the impugned order and pleaded for the dismissal of the appeal. She further argued that the assessee failed to justify the delay.
We have heard the rival submission, perused the record of appeal papers. We are of the considered view that while rejecting the appeal on account of non-service of the assessment order through email or post is not justified. It is difficult to perceive that assessee will all around will watch the Income Tax Portal. It is bare minimum requirement that while serving the assessment order on the assessee, the AO must follow the strict provisions prescribed under section 282 of the Act. We also find that the ld. CIT(A) has called for the detailed reply on the merits of the disallowance and which has been comprehensibly replied by the assessee [from Page 6 to16 CIT(A)’s order], in that case it is unreasonable on the part of the ld.CIT(A)to dismiss the appeal in limine on the ground of delay. In is incumbent on the ld. CIT(A) that he should first satisfy himself on delay in filing appeal. If satisfied, then proceed on the merits of the case. We also India Nippon Electricals Ltd. :- 4 -: observe that the order of the ld.CIT(A) runs into 32 pages for dismissing the appeal in limine on the ground of delay. Hence, seeing the reasons as sufficient cause, we condone the delay in filing the appeal before the CIT(A). Accordingly, the impugned order is set aside and the ld. CIT(A) is directed to hear the appeal afresh 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 as per law. The ld. counsel, who appeared has assured the bench that he will ensure that the assessee will prosecute his case diligently before the ld. CIT(A).
In result, appeal of the assessee is allowed for statistical purpose.
Order pronounced on 17th day of June, 2025 at Chennai.