M/S DIVYA JYOTHI CREDIT CO-OPERATIVE SOCIETY LMITED ,BANGALORE vs. INCOME TAX OFFICER WARD-7(2)(1), BANGALORE

In the course of hearing, it was submitted by learned AR of the assessee that the appeal was filed by the assessee before learned CIT(A) on 26.04.2016 against the order of assessment dated 31.03.2016 but such filing of appeal was in paper format and e-appeal was filed by the assessee on 14.10.2017. He drew my attention to para No.4 of the order of CIT(A) and pointed out that in this para, it was noted by learned CIT(A) that a letter was sent to the assessee by speed post on 06.09.2017 in which this was pointed out by learned CIT(A) that w.e.f. 01.03.2016, the assessee was required to file the appeal electronically and the assessee was requested to file reply on this matter in 15days from the date of receipt of this letter. He further submitted that in para No.5 of his order, learned CIT(A) has noted that the assessee filed a reply on 28.09.2017 in which the Page 10 of 11 assessee requested the learned CIT(A) to treat the appeal filed in paper as valid appeal because when the appeal was filed in paper format on 26.04.2016, e-filing of appeal was not activated and the assessee was advised to file appeal in paper mode and subsequently, the assessee filed the e-appeal also on 14.10.2017 resulting in a delay 570 days in filing e-appeal although paper appeal was filed within the prescribed time. But learned CIT(A) has not condoned the delay in filing e-appeal. He submitted that in the facts of the present case, the delay in filing e-appeal should be condoned and the matter may be restored back to the file of the CIT(A) for a decision on merit.

Learned DR of the Revenue supported the order of the CIT(A).

I have considered the rival submissions. In view of this fact that the requirement of filing e-appeal was prescribed w.e.f.01.03.2016 and the assessee was required to file the appeal within 30.04.2016 which the assessee has done by filing the appeal on 26.04.2016 although in paper format and this is the explanation of the assessee that by this time, e-filing of the appeals was not activated. In para 7.1 of his order, it is noted by learned CIT(A) that as per CBDT Circular No.20/16 dated 26.05.2016, it was noted by the CBDT that it has come to the notice of the Board that although e-filing of appeal is compulsory from 01.03.2016, in some cases, the tax payers who are required to e-file the appeal before CIT(A) were unable to do so due to lack of knowledge of e-filing procedure / technical issues in e-filing also. This is also noted by the CBDT in the said circular that EVC functionality for verification of e-appeals was made operation from 12.05.2016 for individuals and from 19.05.2016 for other persons. Therefore, the time limit for filing appeal before learned CIT(A) by e- appeal was extended up to 15.06.2016. Hence it is seen that this claim of the assessee is correct that when the assessee filed the appeal in paper format, the facility of e-filing of appeal was not operational. Considering all these facts, I feel it proper to condone the delay of 570 days in filing the e-appeal before the Page 11 of 11 CIT(A) and after doing so, I restore the entire matter back to the CIT(A) for a decision on merit because as per the impugned order, there is no decision on merit. Learned CIT(A) should decide the issue on merit after providing reasonable opportunity of being heard to both the sides. In view of this decision, no adjudication on merit is called for at the present stage.

In the result, appeal of the assessee is allowed for statistical purposes.