GOPALKRISHNA NARLA RAO,MUMBAI vs. ACIT 16(2), MUMBAI

Facts on record would reveal that the assessee has been assessed u/s 143(3) of Income Tax Act, 1961 on 29/03/2016 wherein the assessee was saddled with certain additions /disallowances. The assessee preferred appeal against the same before first appellate authority manually in paper form on 29/04/2016 which is well within time prescribed for preferring the appeal against the assessment order. However, since the appeal was filed in paper form, which as per amended Rule 45 effective from 01/03/2016 was required to be filed electronically, Ld. first appellate authority treated the same as invalid appeal and dismissed the same without any further adjudication. Aggrieved, the assessee is in further appeal before us assailing the stand taken by learned first appellate authority.

Upon careful consideration, the undisputed facts that emerges are that the appeal was preferred by the assessee manually in paper form and the same was filed within time prescribed for filing the appeal. However, the said appeal in terms of CBDT Notification No. SO 637(E) [No. 11/2016 (F. No. 149/150/2015-TPL)], dated 1-3-2016, was required to file digitally in electronic form. The failure to file the same in the prescribed form has resulted into dismissal of appeal in limine. Keeping in view the principles of natural justice, we are of the considered opinion that mere technical lapses could not deprive the assessee to seek justice in deserving cases. Therefore, in terms of the judgment of this Tribunal rendered in All India Federation of Tax Petitioners Vs. ITO [ITA No. 7134/Mum/2017 dated Gopal Krishna Narla Rao 04/05/2018], the assessee is directed to e-file the appeal in the prescribed manner before Ld. first appellate authority within 10 days from the date of receipt of this order. Thereafter, the Ld. first appellate authority is directed to admit the appeal and adjudicate the same on merits.