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Facts
The assessee's appeal for AY 2018-19 was dismissed by the CIT(A) citing a delay in filing. The CIT(A) also confirmed disallowances and levied interests under various sections without addressing the merits. The assessee argued that no delay existed, referring to the nationwide Covid-19 lockdown and the Supreme Court's order extending limitation periods.
Held
The Tribunal noted that the assessment order fell within the Covid-19 lockdown period, during which the Supreme Court had extended all limitation dates. Consequently, the Tribunal ruled that there was no delay in the appeal filing. The case was therefore remitted back to the ld. CIT(A) for fresh adjudication on its merits.
Key Issues
The key issues were the condonation of delay in filing an appeal to the CIT(A) due to the Covid-19 pandemic and the Supreme Court's extended limitation period, and whether the CIT(A) should have adjudicated the appeal on its merits rather than dismissing it on grounds of delay.
Sections Cited
250, 143(1), 11(2), 234A, 234B, 234C, 234F
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Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This appeal filed by the assessee is directed against the order of Addl./Joint Commissioner of Income Tax[JCIT(A)], Thiruvanantpura under section 250 of the Income Tax Act, 1961 for the A.Y.2018-19 dated 14.08.2024. The Assessee has raised the following grounds of appeal : [A] “1.1. On the facts and circumstances of the case and in Law, the Addl./Jt.Commissioner of Income tax (Appeals). Thiruvanantpuram, under National Faceless Appeal Centre (NFAC), erred in dismissing the appeal on the ground of delay in filing by 220 days when no such notice dated 05.08.2024 (DIN ITBA/APL/F/APL_1/2024- 25/1067287837(1) was received by the Appellant Trust asking reason for condonation in delay of filing of said appeal on 24.11.2020 from the date of receipt of order U/sec 143(1) on 18.03.2020. 1.2. Without Prejudice, the said CIT(A) erred in not considering the fact that Sec 3(1) of The Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020, r.w. C.B.D.T. Notification No.35/2020/F.No.370142/23/2020-TPL] dated 29.06.2020 extended the due dates of filing of any appeals to 31.12.2020 when the due date falls during the period from the 20.03.2020 to 29.06.2020 and therefore the said appeal was filed within the due date. 1.3. The said CIT(A) ignored the submissions filed with paper compilation on 18.07.2024 and erred in issuing notice dated 05.08.2024 asking reason for condonation in delay of filing of said appeal. 1.4. Therefore, the said appeal shall be restored back to the file of CIT(A) for fresh adjudication in the interest of natural justice. ON MERIT
2. Ground No.2 Disallowance of Deduction U/sec 11(2) of Rs.74,49,246/- On the facts and circumstances of the case, the said CIT(Appeals) erred in not allowing deduction claimed of accumulation of Rs. 74,49,246/- under section 11(2) of the Income tax Act following the assessment order for A.Y 2017-18 ignoring the fact that the provisions of section 11(2) and Rule 17 read with Form No. 10 requires the Trustees to state only the objects of the Trust for which the income is being accumulated which was stated in the e-filed Form No. 10.
3. Ground No.3 Interest U/sec 234A The said CIT(Appeals) erred in confirming interest of Rs.67,020/- U/sec 234A when no such interest is chargeable and there was a genuine reason for delay in filing of income tax return on the due date and the application of the appellant for condonation of delay in filing of income tax return as directed by the CBDT Circular No. 6/2020 dated 19.2.2020
ITA No.776/PUN/2025 [A]
Ground No.4 Interest u/sec. 2348 and 234C The said CIT(Appeals) erred in confirming interest charged of Rs.495,948/-under section 234B, Rs.67,690/- under section 234C and when no such interest can be charged.
Ground No.5 Levy of Fees under section 234F The said CIT(Appeals) erred in confirming levy of fees of Rs.10,000/- under section 234F for default in late filing of income tax return when no such late fees can be levied and there was a genuine reason for delay in filing of income tax return and application for condonation of delay in filing of income tax return as directed by the CBDT Circular No. 6/2020 dated 19.02.2020 6. The appellant craves leave to add, amend, alter, modify, delete and/or change all or any of the above grounds on or before the date of hearing.” Findings & Analysis : 2. We have heard both the parties and perused the records. In this case, ld.CIT(A) has dismissed the appeal of the assessee without discussing merits of the case. The order of the ld.CIT(A) is reproduced as under : “1. In this case, the appeal was filed on 24-11-2020 but the Order u/s 143(1) was received on 18-03-2020, there was a delay of 228 days in filing the appeal. Vide this office notices dated 01-07-2024, 09-07-2024, 27-07-2024 and 05-08-2024, the appellant was asked to show valid reasons for filing the appeal belatedly but there was no response from the appellant. Therefore, the appeal is dismissed.” 2.1 Thus, ld.CIT(A) has stated that there is a delay in filing appeal. However, it is noted that the Assessment Order was passed on 18.03.2020. Covid-19 Lockdown was declared on 15.03.2020. The Hon’ble Supreme Court had extended the dates. From 15.03.2020 [A] there was Lockdown i.e. Covid-19 in the entire country. Therefore, the Hon’ble Supreme Court has suo-moto taken cognizance in Re: Cognizance for Extension of Limitation in Suo Motu W.P. (C) No. 3 of 2020 and extended the limitation dates. In these facts and circumstances of the case, there is no delay in filing the appeal by the assessee before the ld.CIT(A).
2.2 Therefore, in this case, there is no delay in filing appeal. Therefore, the order of the ld.CIT(A) is set-aside to ld.CIT(A) for denovo adjudication. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 23 May, 2025.