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Facts
The assessee, an Ex-servicemen Association running a school, filed returns for AYs 2016-17 to 2020-21, which were processed under Section 143(1)(a). The assessee faced significant delays in filing appeals before the CIT(A) due to reasons including the COVID-19 pandemic and lack of awareness of online processing and additions. Form 10B was also not filed on time.
Held
The Tribunal condoned the delay in filing appeals before the CIT(A), referencing Supreme Court judgments on condoning delays. It noted that the CIT(A)/NFAC should adopt a justice-oriented approach. The Tribunal set aside the impugned orders and remitted the issues to the CIT(A)/NFAC for de-novo adjudication.
Key Issues
Whether the delay in filing appeals before the CIT(A) should be condoned, and if the CIT(A) was justified in dismissing the appeals in limine on grounds of delay without a fair opportunity of hearing.
Sections Cited
143(1), 250, 250(6)
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Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER BENCH :
The captioned five appeals at the instance of assessee pertaining to A.Yrs. 2016-17 to 2020-21 are directed against the separate orders dated 13.02.2023 and 14.02.2023 of National Faceless Appeal Centre(NFAC), Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of respective Intimation Orders dated passed u/s.143(1) of the Act.
At the outset, Ld. Counsel for the assessee submitted that the assessee trust is formed by the Ex-servicemen of Indian Army with a noble cause of providing quality education and runs Sainik school in rural area at village Amboli, Sindhudurg District since last many years. Return of income for the impugned assessment years were filed and processed u/s.143(1)(a) of the Act. However, to 548/PUN/2025 Sindhudurg District Ex-Servicemen Association for non filing of Form 10B, gross receipts were added in the hands of assessee from year after year but due to online processing assessee was not aware about the huge additions and demands created for the impugned assessment years in the returns processed u/s.143(1)(a) of the Act, Lateron, when the assessee came to know about the alleged additions for the impugned assessment years, it filed the appeals for all the impugned assessment years before ld.CIT(A) and there was considerably delay. He also submitted that major delay for few years is purely on account of covid-19 pandemic outbreak prevailed across the country and it was not intentional. Therefore, he submitted that due to ‘reasonable cause’ the appeals could not be filed within the time limit but still ld.CIT(A) did not condone the delay and dismissed the appeals in limine. He thus prayed that the delay in filing of the appeals before ld.CIT(A) be condoned and the issues may be restored to the file of ld.CIT(A) for necessary adjudication. He also submitted that Form 10B was not filed on the due date but lateron they have been procured and were even submitted before ld.CIT(A) but the same have not been considered.
On the other hand, ld. Departmental Representative supported the orders of ld.CIT(A) but did not oppose the request of ld. Counsel for the assessee of condoning the delay in filing of appeals before ld.CIT(A) and restoring the issue in all these appeals to the file of ld.CIT(A) for necessary adjudication.
We have heard the rival submissions and perused the record placed before us. Admittedly, the appeals before ld.CIT(A) for the impugned assessment years have been filed belatedly. We also observe that the assessee is engaged in charitable activity of imparting education to students of Ex-servicemen in a sainik school located in rural area. For past few years, filing of returns to 548/PUN/2025 Sindhudurg District Ex-Servicemen Association and processing of returns has gone online but still there are many assessee(s) who are not well versed with this technical advancement and also not so techno-friendly of checking e-mails sent through ITBA portal from time to time. Slowly and gradually, the assessees are getting educated and are also getting used to this new system but still exceptions cannot be ignored. In the given case also, assessee was not aware about the processing of returns and the additions made for various assessment years under appeal.
The appellate remedy or forum is created by the statute is to rest the dispute and not to accelerate for higher forum perfunctorily. We would like to quote the judgment of Hon’ble Supreme Court in the case of Raheem Shah & ANR Vs Govind Singh & Ors [CIVIL APPEAL No.4628 OF 2023, dated 24.07.2023], wherein the Hon’ble Apex Court while dealing with tax litigation, held that the Ld.CIT(A)/NFAC being a quasi-judicial authority was expected to adopt justice oriented approach rather resorting to iron-cast technical one however the Ld.CIT(A)/NFAC came to dismiss the appeals of the assessee in limine on the ground of delay without even according a fair opportunity of hearing. Having regard to the facts of the instant case, ld.CIT(A) ought to have condoned the delay by virtue of judgments of Hon’ble Supreme Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382). We therefore condone the delay occurred before ld.CIT(A) in filing of appeals by the assessee for the impugned assessment years.
Considering the totality of facts and in all fairness the assessee is entitled to a fair opportunity. In view of this, without to 548/PUN/2025 Sindhudurg District Ex-Servicemen Association offering any comments on merits of the case, we deem it fit to set- aside the impugned orders and remit all the issues to the file of Ld.CIT(A)/NFAC for de-novo adjudication and pass a speaking order in terms of provisions of section 250(6) of the Act. Assessee is directed to update email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned orders are set aside and the effective grounds of appeal raised by the assessee in all these appeals are allowed for statistical purposes.
In the result, all the appeals of the assessee are allowed for statistical purposes.
Order pronounced on this 16th day of July, 2025.