Loading judgment…
Facts
The assessee's appeals against reassessment under Section 143(3) read with Section 147 were dismissed by the CIT(Appeals) for failure to pay taxes under the Vivad Se Vishwas Scheme (VSVS). A significant delay of 1016 days in filing the appeals before the ITAT was attributed to the company Director's personal and health issues, and financial crisis.
Held
The ITAT condoned the 1016-day delay, finding sufficient cause. It set aside the CIT(Appeals)'s orders and remanded the matter back to the CIT(Appeals) for a fresh decision on the merits of the appeal, cautioning the assessee to cooperate promptly.
Key Issues
Whether the delay in filing appeals before the ITAT should be condoned given the circumstances, and whether the CIT(Appeals) was correct in dismissing the appeal solely due to non-compliance with the Vivad Se Vishwas Scheme.
Sections Cited
143(3), 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Rajesh Kumar
Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeals bearing and 520/KOL/2025 are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, both dated 24th March, 2022 passed for assessment year 2012-13. 1 & 520/KOL/2025 (A.Y. 2012-2013) JAS Equipments & Engineers Pvt. Limited
Both the appeals are time barred by 1016 days in filing the appeals by the assessee before the Tribunal. However, The Director of the assessee-company filed a condonation petition before the ITAT in support of condonation of delay of 1016 days mentioning that due to sudden unfortunate death of her husband, she was entrusted with the huge responsibility of handling the company’s matters including financial affairs along with various statutory compliance of the income tax matters etc. Being an ordinary housewife, she has very little knowledge about income tax matters as well as being a cancer patient and suffering various ailments, she was not able to handling the matter. Moreover, she opted Vivad-se-Vishwas Scheme, 2020 and filed Forms 1 & 2 towards this scheme and failed to make the final payment of tax towards VSVS due to financial crisis. When she came to know about the order passed by the ld. CIT(Appeals), she approached the ld. A.R. to prefer an appeal, due to that there was a delay of 1016 days in filing the appeals before the Tribunal. Therefore, she pleaded to condone the delay in both the appeals.
Considering the facts and circumstances of the case, we are of the view that the assessee was prevented in filing the appeals within the stipulated time. Therefore, we are inclined to condone the delay of 1016 days. Hence the delay is condoned for both the appeals.
4. The facts in brief are that the assessee-Company is engaged in the business of fabrication and doing business in the name and & 520/KOL/2025 (A.Y. 2012-2013) JAS Equipments & Engineers Pvt. Limited style as “Jas Equipment and Engineers Pvt. Ltd.’ during the year under consideration i.e. 2011-12 relevant to assessment year 2012-13. The assessee-company filed its revised return of income through e-filing portal on 17.01.2013 declaring total income of Rs.25,46,020/-. Subsequently the return of income was selected for scrutiny and the income was assessed under section 143(3) of the Act at Rs.1,55,40,120/- on 27.03.2015 adding TDS on salary payment of Rs.1,58,183/- and reassessed income under section 143(3) read with section 147 at Rs.1,56,98,303/-. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals).
The ld. CIT(Appeals) dismissed the appeal of the assessee saying that the assessee opted for Vivad Se Vishwas Scheme and Form 1 was issued on 30.01.2021 and the assessee has not been able to produce Form 5 issued by the designated authority, and failed to pay the taxes. Therefore, ld. CIT(Appeals) directed the ld. Assessing Officer to collect the disputed tax according to the scheme under VSVS.
On being aggrieved, the assessee preferred appeals before the ITAT. At the outset, it was the submission of the ld. Counsel for the assessee that the assessee is willing to prosecute the appeals before the ld. CIT(Appeals) on merit and he pleaded to set aside the orders passed by the ld. CIT(Appeals) and restore the matter to the file of ld. CIT(Appeals) to decide it afresh.
& 520/KOL/2025 (A.Y. 2012-2013) JAS Equipments & Engineers Pvt. Limited 6. On the other hand, ld. Departmental Representative submitted that the assessee itself opted for Vivad Se Vishwas Scheme and filed Form 1 but subsequently failed to pay the taxes according to VSVS Act. Therefore, the ld. CIT(Appeals) rightly dismissed the appeals. He pleaded to confirm the orders passed by the ld. CIT(Appeals).
We have heard both the sides and perused the material available on record. By considering the totality of the facts and circumstances of the case, we are of the view that it is a fit case to set aside the orders passed by the ld. CIT(Appeals) and remit the matter back to the file of ld. CIT(Appeals) with a direction to dispose of the appeal without any inference on the observations of earlier order passed by him and to decide it afresh on merit. At the same breath, we also hereby caution the assessee to promptly co- operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits of the case, based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 30/09/2025.