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Facts
The assessee's appeal before the CIT(A) was dismissed in limine due to a delay of 1028 days. The assessee claimed the delay was caused by a combination of COVID-19 related issues, miscommunication, and departmental inaction, including incorrect email addresses being used for official communications.
Held
The Tribunal condoned the delay of 1028 days, stating that the assessee was prevented from filing the appeal within the stipulated time due to reasonable cause. The Tribunal set aside the order of the CIT(A) and restored the matter to the CIT(A) for denovo adjudication on merits, granting one more opportunity to the assessee.
Key Issues
Whether the delay of 1028 days in filing the appeal before the CIT(A) was condonable on account of reasonable cause, and whether the CIT(A) was justified in dismissing the appeal in limine without adjudicating on merits.
Sections Cited
250, 143(1)(a), 156, 154, 245, 154(4), 154(7), 154(8)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y.2020-21 is directed against the order of Ld. Addl/JCIT(A)-3, Bangaluru dated 11.02.2025 passed u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) which inturn is arising out of Intimation order u/s.143(1)(a) of the Act dated 18.12.2021.
At the outset, Ld. Counsel for the assessee submitted that ld.CIT(A) has dismissed the assessee’s appeal in limine by not condoning the delay of 1028 days. He prayed that the delay may please be condoned as the assessee failed to file the appeal before ld.CIT(A) due to ‘reasonable cause’ and the matter may please be restored to the file of ld.CIT(A) for denovo adjudication.
On the other hand, ld. Departmental Representative supported the orders of the lower authorities.
We have heard the rival contentions and perused the record placed before us. On perusal of the impugned order, we find that ld.CIT(A) has dismissed the assessee’s appeal in limine by not condoning the delay of 1028 days. Assessee is a Limited company and filed the return of income for A.Y. 2020- 21 on 31.12.2020 and the return was processed u/s.143(1)(a) of the Act on 18.12.2021 wherein certain adjustments have been made. Aggrieved with the said intimation order, assessee preferred appeal before ld.CIT(A) but the same was filed on 12.11.2023, leading to delay of 1028 days. Reasons for delay has been mentioned by the assessee enumerating the following chronology of events which led to delay in filing of the appeal. :
“Events in Chronological order that caused delay in filing the appeal”
Sl.No. Date Subject Pre-Covid period (15-03-2020 to 28-02-2022) 1 24-03-2020 Company shut down due to COVID-19 lockdown; all employees including Accountant Mr. Laxmi Patra, retrenched 2 31-12-2020 Return filed using email id of retrenched Accountant (laxmi.patra@jayahindsclaky.com) 3 18-12-2021 Intimation u/s.143(1)(a) sent to same retrenched employee’s email. 4 23-12-2021 Demand notice u/s.156 also sent to same incorrect email. Post-Covid period (From 01-03-2022 onwards 5 25-09-2023 Demand notice sent to updated email (sachdev@kineticindia.com); reply submitted on 12-10-2023 advising rectification u/s.154. 6 12-10-2023 Rectification u/s.154(a)(b) filed; pointed out error in Form 3CD (Clause 21 (g)); no AO response till date; rectification window open till 31-03- 2026
7 25-11-2023 Second rectification request sent to grievance cell 8 30-11-2023 Received system-generated reply; no rectification or written refusal 9 21-12-2023 Third rectification request sent; still no action from AO, violating Section 154(4), 154(7), 154(8) 10 29-10-2024 Adjustment intimations u/s.245 received for AYs 2023-24 & 2024-25 11 12-11-2024 Appeal filled before CIT (A) within 30 days of receipt of 245 intimations 12 12-11-2024 Realized rectification route was futile; appeal filed promptly from awareness date 13 11-02-2025 CIT(A) rejected condonation; appeal not adjudicated 14 06-03-2025 Appeal dismissed citing 1028 day delay from unreceived original intimation Delay caused by COVID, mis- communication, and department inaction
From going through the above events, we find that assessee was prevented from filing the appeal before ld.CIT(A) within the stipulated time limit for ‘reasonable cause’. We therefore condone the delay of 1028 days in filing the appeal before ld.CIT(A). Further, ld.CIT(A) has not dealt with merits of the case. Under the given facts and circumstances, we in the interest of natural justice being fair to both the parties, deem it appropriate to grant one more opportunity to the assessee, setting aside the impugned order to the file of ld. CIT(A). Assessee is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.CIT(A). It should refrain from taking adjournments unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 25th day of August, 2025.