SAP PROPERTIES PRIVATE LIMITED,MUMBAI vs. ITO WARD 1(3)(3), MUMBAI

Facts on record would reveal that the assessee has been assessed u/s 143(3) read with Section 263 of Income Tax Act, 1961 on 15/03/2016 wherein the assessee was saddled with addition of Rs.2 Crores u/s 68. The assessee preferred appeal against the same before first appellate authority manually in paper form on 12/04/2016 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 well within time prescribed for filing the appeal. It also appears from the grounds of appeal raised by the assessee that the appeal has subsequently been e-filed on 13/06/2016 in due compliance of CBDT Circular No. 20/2016 dated 26/05/2016. Therefore, since the extant rules have substantially been complied with by the assessee, the appeal deserve to be adjudicated on merits. Keeping in view the principle of natural justice, we direct Ld. CIT(A) to admit the appeal and adjudicate the same on merits after affording reasonable opportunity of hearing to the assessee.