What did the Tribunal hold?

The Tribunal held that the non-filing of an appeal in electronic form is a procedural defect that can be cured. The matter was restored to the CIT(A) for disposal on merits, with the assessee directed to e-file the appeal.

The assessee filed an appeal manually instead of electronically. The CIT(A) dismissed the appeal on this technical ground, deeming it not maintainable.

What were the issues?

Whether an appeal dismissed solely on the technical ground of manual filing instead of electronic filing is valid, or if it should be restored for consideration on merits.

Noorali Bandeali Charania vs ITO | ITAT Mumbai 2020

Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI

Before: SHRI C.N. PRASAD, HONBLE & SHRI S. RIFAUR RAHMAN, HONBLE

For Appellant: Shri Tanmay Phadke

For Respondent: Shri Kiran Unavkar

Hearing: 26.02.2020Pronounced: 13.03.2020

O R D E R PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) – 58, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 16.10.2018 for the Assessment Year 2013-14.

Assessee has raised his grievance that the Ld.CIT(A) dismissed the appeal on technical ground as the assessee has not filed the appeal in electronic form but filed manually.

(A.Y: 2013-14) Noorali Bandeali Charania 3. Ld. Counsel for the assessee submitted that, appeal filed by the assessee was rejected by the Ld.CIT(A) for the reason that assessee has not filed appeal in the electronic form and was filed manually and hence appeal is not maintainable. Ld. Counsel for the assessee submitted that appeal was filed manually on 03.03.2016 within the prescribed time, and therefore dismissal of appeal on technical ground is not justified. Ld. Counsel submitted that non-filing of appeal electronically is only a technical defect and the appeal cannot be invalidated since it is not filed electronically. Reliance was placed on the following decisions in support of his contention that the appeal filed manually cannot be treated as invalid simply because it was not filed electronically. (i) All India Federation of Tax Practitioners v. Income Tax Officer in ITA.No. 7134/Mum/2017 [64 ITR (Trib.) 0704]. (ii) M/s. Plaza Securities Pvt. Ltd., v. DCIT in ITA.No. 6741/Mum/2017 dated 17.01.2019.

Ld. DR vehemently supported the orders of the authorities below.

We have heard the rival submissions, perused the orders of the authorities below and the case laws relied on. Identical issue had come up before the Coordinate Bench in the case of All India Federation of Tax Practitioners v. ITO in ITA.No. 7134/MUM/2017 and the Tribunal held that non-filing of appeal in the electronic form is only a procedural defect which can be cured and the Tribunal restored matter back to the file of the (A.Y: 2013-14) Noorali Bandeali Charania Ld.CIT(A) for disposal of appeal on merits and the assessee was directed to file appeal in electronic form within ten days on receipt of order. Similar view has been taken by the Coordinate Bench in the decision which was relied on by the Assessee. Following the above decisions, we restore this appeal to the file of the Ld.CIT(A) and assessee is directed to e-file the aforesaid appeals within a period of Fifteen (15) days from the date of receipt of this order, consequent to which delay in e-filing shall stand condoned and the Ld.CIT(A) shall dispose off the appeals on merits. Needless to say that the Ld.CIT(A) shall give adequate opportunity of being heard to the assessee.

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

Order pronounced in the open court on the 13th March, 2020

NOORALI BANDEALI CHARANIA,MUMBAI vs. ITO 17(2)(5), MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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