M/S.PHA INDIA P LTD.,KANCHIPURAM vs. ACIT CORPORATE CIRCLE-5(2), CHENNAI

At the outset, we find that there is a delay of 145 days in appeal filed by the assessee . During the course of hearing, learned AR for the assessee, submitted that delay in filing of appeal is mainly due to lockdown imposed by the Govt. on account of spread of Covid-19 infections and in view of Hon’ble Supreme Court suo motu Writ Petition No.3 of 2020, if the period of delay is covered within the period specified in the 2 order of the Apex Court , then same needs to be condoned in view of specific problem faced by the public on account of Covid-19 pandemic.

The learned DR, on the other hand, fairly agreed that delay may be condoned in the interest of justice.

Having heard both sides and considered reasons given by the learned AR, we find that the Hon’ble Supreme Court in suo motu Writ Petition No.3 of 2020, has extended limitation applicable to all proceedings in respect of courts and tribunals across the country on account of spread of Covid-19 infections w.e.f. 15.03.2020, till further orders and said general exemption has been extended from time to time. We further noted that delay noticed by the Registry pertains to the period of general exemption provided by the Hon'ble Supreme Court extending limitation period applicable for all proceedings before Courts and Tribunals and thus, considering facts and circumstances of the case and also in the interest of natural justice, we condone delay in filing appeal filed by the assessee.

3 5. We have heard both the parties, perused material available on record and gone through orders of the authorities below. Admittedly, assessment proceedings before the Assessing Officer was ex-parte, the assessee neither appeared nor furnished any details to justify its claim of disallowance u/s.14A amounting to Rs.25,22,865/-, disallowance towards leave encashment salary amounting to Rs.9,65,261/- and disallowance of Rs.16,07,892/- by invoking provisions of section 36(1)(va) r.w.s 2(24)(x) of the Income Tax Act, 1961. The appeal filed before the first appellate authority, was delayed by 7 days. According to learned CIT(A), no affidavit or sufficient cause has been assigned by the assessee for condoning delay in filing of appeal. Therefore, left with no option, the learned CIT(A) dismissed the appeal without condoning the delay of 7 days in filing appeal. Before us, the assessee explained reasons for not appearing before the learned CIT(A). Therefore, considering reasons given by the assessee and also delay of 7 days, we deem it appropriate to set aside appeal filed by the assessee to the file of the learned CIT(A) and direct the CIT(A) to condone delay of 7 days in filing appeal and also decide issue on merits.