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Facts
The assessee filed twin appeals against CIT(A)/NFAC orders for AY 2012-13. In the quantum appeal (ITA No. 2739/Del/2024), the CIT(A)/NFAC refused to condone a 784-day delay in filing the appeal, failing to exclude the Covid-19 pandemic period from limitation calculations as per Supreme Court directions. The other appeal (ITA No. 2740/Del/2024) related to consequential penalty proceedings under section 271(1)(c).
Held
The Tribunal found that the CIT(A)/NFAC erred by not excluding the Covid-19 pandemic period (15.03.2020 to 28.02.2022) from the limitation period, contrary to the Supreme Court's ruling in "Cognizance for Extension of Limitation, In Re". Consequently, the quantum appeal was restored to the CIT(A)/NFAC for fresh adjudication, allowing the assessee three opportunities to present their case, and the penalty appeal would follow the same decision.
Key Issues
Whether the CIT(A)/NFAC was justified in refusing to condone the delay in filing the appeal by not excluding the Covid-19 pandemic period as per Supreme Court directions.
Sections Cited
Section 147 of the Income Tax Act, 1961, Section 144 of the Income Tax Act, 1961, Section 271(1)(c) of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
ORDER These assessee’s twin appeals, & 2740/Del/2024 for Assessment Year 2012-13, arises against the order of CIT(A)/NFAC, Delhi dated 15.03.2024 & 21.03.2024 in DIN & Order Nos. ITBA/NFAC/S/250/2023-24/1062720122(1) & ITBA/NFAC/S/250/2023-24/1063059692(1), in proceedings u/s 147 r.w.s. 144 and 271(1)(c) of the Income Tax Act, 1961 (in short “The Act”).
Heard both the parties at length. Case files perused.
I straightaway advert to assessee’s quantum appeal CIT(A)/NFAC’s has refused to condone 784 days delay in filing of the lower appeal instituted on 03.03.2022 against the Assessing Officer’s assessment framed on 10.12.2019.
& 2740/Del/2024 Rajender Prasad Verma 4. Faced with this situation, the Revenue could hardly dispute the clinching fact that the CIT(A)/NFAC has included even the Covid-19 pandemic outbreak period from 15.03.2020 to 28.02.2022 whilst counting the assessee’s limitation despite the fact that the same has already been ordered to be excluded as per hon’ble apex court landmark directions in Cognizance for Extension of Limitation, In Re (2022)441 ITR 722 (SC). I therefore, deem it appropriate to restore the assessee’s instant quantum appeal CIT(A)/NFAC for its appropriate adjudication subject to a rider that assessee’s shall plead and prove this case within three effective opportunities at his own risk and responsibility, in consequential proceedings. Ordered accordingly.
Same order to follow in assessee’s latter appeal since involving consequential u/s 271(1)(c) penalty proceedings.
This assessee’s twin appeals & 2740/Del/2024 are allowed for statistical purpose in above terms. A copy of the common order be placed in respective case files. Order Pronounced in the Open Court on 28/11/2023.