SMT. T. ANNAPURANI,CHENNAI vs. ITO, CORPORATE WARD - 2 (3), CHENNAI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 6, Chennai, dated 04.12.2019 relevant to the assessment year 2013-14 challenging the dismissal of the appeal on the ground of belated e-fling of appeal.

Brief facts of the case are that the assessee has filed the return of income for the assessment year 2013-14 on 23.10.2013 admitting an income of ₹. 68,91,171/-. The return filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 [“Act” in short] and thereafter, the case of the assessee was taken up for scrutiny. After considering the details filed against statutory notices, the assessment under section 143(3) of the Act was completed by assessing total income of the assessee at ₹. 1,03,96,681/-. On appeal, the ld. CIT(A) dismissed the appeal filed by the assessee without adjudicating the issue on merits on the ground that the assessee has failed to explain the delay in e-filing the appeal.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the ld. CIT(A) has erroneously dismissed the appeal summarily without going into the merits of the case and without appreciating the fact that the assessee has filed manual appeal within the time stipulated under the Act. It was further submission that the assessee was not aware of e-filing procedure which was introduced with effect from 01.03.2016. It was further submission that after receipt of a letter dated 03.05.2017 from the office of the ld. CIT(A) pointing out the requirement of filing the appeal online, the assessee has duly filed her appeal online on 10.05.2017. Thus, the ld. Counsel for the assessee prayed that suitable directions may be given to the ld. CIT(A) to adjudicate the issue on merits by giving an opportunity to the assessee.

Per contra, the ld. DR referred to the order of the ld. CIT(A) and submitted that the assessee has failed to file the appeal electronically before the due date of filing of the appeal, which is mandated by amendment to Rule 45 of the I.T. Rules, notified by the CBDT vide Notification No. S.O. 637(E) dated 01.03.2016, the manual appeal filed has been rightly treated by the ld. CIT(A) as non-est.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. It is an admitted fact that against the assessment order, the assessee filed a manual appeal on 07.04.2016, which is well within the time provided under the Act. Moreover, it is the very first year of introduction of new amendment to Rule 45 of the Income Tax Rules by the Income-tax (3rd Amendment) Rules, 2016 vide Notification No. 11/2016 dated 1st March, 2016. On perusal of the assessee’s paper book, we find that the ld. CIT(A) has issued a letter dated 03.05.2017 intimating the assessee for e-filing of the appeal and to comply with e-filing of the appeal on or before 22.05.2017. Accordingly, the assessee has e-filed the appeal on 10.05.2017 well before the date specified by the ld. CIT(A) in his letter dated 03.05.2017 for e-filing the appeal. In view of the above facts, we are of the considered opinion that the assessee was prevented by reasonable cause for the delay in e-filing the appeal within the due date of filing the appeal before the ld. CIT(A). Accordingly, we condone delay in filing the appeal before the ld. CIT(A). Thus, we set aside the appellate order and direct the ld. CIT(A) to adjudicate the grounds on merits raised in the appeal of the assessee in accordance with law and pass fresh appellate order after affording sufficient opportunities of being heard to the assessee.