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Facts
The assessee challenged the disallowance of its Section 80P claim made in an intimation under Section 143(1). The assessment order was passed during the COVID Pandemic, and the disallowance was made by the CPC without providing an opportunity. After an unaddressed rectification application under Section 154, the assessee filed an appeal before the Ld. CIT(A) which was dismissed in limine on grounds of limitation without merits.
Held
The Tribunal found that the assessee had provided reasonable cause for the delay in filing the appeal before the Ld. CIT(A), considering the COVID period and the non-action on the Section 154 application. Consequently, the delay was condoned, and the Ld. CIT(A)'s order dismissing the appeal was set aside. The matter was restored to the Ld. CIT(A) for a fresh decision on merits after providing a reasonable opportunity of hearing.
Key Issues
Whether the Ld. CIT(A) was justified in dismissing the appeal in limine due to delay, and if the assessee had sufficient cause for the delay in filing the appeal.
Sections Cited
250, 80P, 143(1), 154
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Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA
Before: SRI SANJAY GARG & SRI SANJAY AWASTHI
order
: 16.01.2025 ORDER
Per Sanjay Awasthi, Accountant Member:
The present appeal filed by the assessee is directed against the order dated 14.06.2024 of the Commissioner of Income Tax (Appeals), Addl/JCIT(A)-2, Guwahati [hereinafter referred to as Ld. 'CIT(A)'] passed u/s. I.T.A. No.: 1668/KOL/2024 Assessment Year: 2019-20 Asansol Division LICI Employees Coop Multipurpose Society Limited 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year 2019-20.
The assessee in this appeal is aggrieved by the action of the Ld. CIT(A) in dismissing the appeal of the assessee on the ground of limitation without adjudicating the same on merits. The assessee in this appeal has agitated the disallowance of claim made by the assessee u/s. 80P of the Act in the intimation/assessment done u/s. 143(1) of the Act.
At the outset, the Ld. Counsel for the assessee has submitted that the impugned assessment order was passed on 29.10.2020, which was during the COVID Pandemic period and even the aforesaid disallowance was made by the CPC in an intimation u/s. 143(1) of the Act without giving opportunity to the assessee and beyond the jurisdiction of the CPC u/s. 143(1) of the Act. The assessee preferred a rectification application u/s. 154 of the Act to the AO/CPC for rectification of the said order since the said application was not considered for long time, the assessee under the circumstances preferred an appeal before the Ld. CIT(A). It was explained before the Ld. CIT(A) that the delay in filing the appeal before the ld. CIT(A) was not intentional, rather it was mainly due to the fact that the intimation order u/s. 143(1) of the Act was passed during the COVID Period. Further, there was no action taken by the AO on the application moved by the assessee u/s. 154 of the Act. The Ld. CIT(A), however, did not condone the delay in filing the appeal and dismissed the appeal in limine.
We have heard the rival contentions and gone through the record. We are of the view that the assessee has duly explained the reasons for delay in filing the appeal before the Ld. CIT(A) and the same, in our view, constitute reasonable cause for the delay caused in filing the appeal before the Ld. CIT(A). We, therefore, set aside the order of the Ld. CIT(A) and restore the matter to the file of the ld. CIT(A) with a direction to decide the appeal on merits. The delay, if any, occurred in filing the appeal before the Ld. CIT(A) is Page 2 of 3 I.T.A. No.: 1668/KOL/2024 Assessment Year: 2019-20 Asansol Division LICI Employees Coop Multipurpose Society Limited hereby condoned. Needless to say, that the ld. CIT(A) will pass a speaking order after affording reasonable opportunity of hearing to the assessee.