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Facts
The assessee's appeal for AY 2017-18, arising from an assessment under Section 144 of the Income-tax Act, 1961, was not admitted by the CIT(A)/NFAC. The refusal was based on a 54-day delay in filing the appeal, which the CIT(A) deemed unexplained.
Held
The Tribunal held that the CIT(A)/NFAC erred by including the period from 15.3.2020 to 19.10.2020 in the delay calculation, as this period should be excluded for limitation purposes according to the Supreme Court's decision in *Cognizance For Extension Of Limitation (2022) 441 ITR 722 (SC)*. The case was remanded back to the CIT(A)/NFAC for fresh adjudication on merits, with the onus on the assessee to prove relevant facts.
Key Issues
Whether the CIT(A)/NFAC correctly refused to admit the assessee's appeal on grounds of delay, or if the period specified by the Supreme Court for limitation exclusion should have been applied.
Sections Cited
Section 144, Income-tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2017-18 arises against National Faceless Appeal Centre (NFAC), Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1055834597(1), dated 07.09.2023, in case no. NFAC/2016-17/10003360, in proceedings u/s 144 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused.
It transpires at the outset with the able assistance coming from both the parties that the learned CIT(A)/NFAC has refused to admit the assessee’s lower appeal instituted on 19.10.2020 against the Assessing Officer’s assessment framed on 22.12.2019 on the ground that the corresponding delay involved therein of 54 days had remained unexplained.
The Revenue could hardly dispute the clinching fact that the learned CIT(A)/NFAC has ended up in including the time period from 15.3.2020 to 19.10.2020 , which has already been directed to be excluded for all purposes by the hon’ble apex court in its land mark decision in Cognizance For Extension Of Limitation, In re. (2022) 441 ITR 722 (SC). That being the case, I hereby remand the assessee’s instant appeal back to the learned CIT(A)/NFAC for his afresh appropriate adjudication, as per law, preferably within three effective opportunities of hearing subject to a rider that it shall be the assessee’s responsibility only to plead and prove all the relevant facts in consequential proceedings. Ordered accordingly.
This assessee’s appeal is allowed for statistical purpose in above terms.
Order pronounced in open court on 28.11.2024.