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Facts
The assessee's appeal was dismissed by the Ld. CIT(A) for being filed with a delay of 180 days, without condoning the delay. This dismissal occurred despite a Delhi High Court order dated 05.12.2023, which clarified that if the appeal was filed before the Commissioner within two weeks, it should not be dismissed on grounds of limitation. The assessee claimed to have filed the appeal on 13.12.2023, within the two-week period stipulated by the High Court.
Held
The Income Tax Appellate Tribunal (ITAT) found the CIT(A)'s dismissal of the appeal on limitation grounds to be unsustainable, as it ignored the clear directive from the jurisdictional High Court. The ITAT remitted the matter back to the Ld. CIT(A) with a direction to decide the appeal on its merits, providing the appellant a proper and effective opportunity of being heard, in accordance with the High Court's order.
Key Issues
Whether the CIT(A) erred in dismissing an appeal solely on the grounds of limitation, thereby disregarding a specific direction from the Delhi High Court to condone such delay if the appeal was filed within a stipulated timeframe.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘A’: NEW DELHI
Before: SHRI S RIFAUR RAHMAN & SHRI SUDHIR PAREEK
This appeal is preferred by the Assessee against the order dated 29.04.2024 passed by the National Faceless Appeal Centre (NFAC) / Learned Commissioner of Income Tax (Appeal) (hereinafter
ITA No.- 2154/Del/2024 Bonlon Industries Limited. referred to as ‘Ld. CIT(A)’)/, Delhi for the Assessment Year (‘AY’)
2018-19.
1.1 The assessee has raised the following grounds of appeal:
“1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in holding that there was a delay in filing the appeal for 180 days and not condoning the same, ignoring the order of Hon’ble Delhi High Court in the Writ Petition No. (C) 15617/2023 & C.M. APPL. 62574-62575/2023 dated 05.12.2023, wherein it was clarified that if the appeal is filed before the Commissioner within Two weeks, the same shall not dismissed on the ground of limitation. This order was brought to the notice of the CIT (A) in Para 7 of the statement of facts filed with the appeal.
2. That the appeal against the assessment order was filed on 13.12.2023 i.e. within two weeks from the order of the Hon’ble Delhi Court dated 05.12.2023 and as such should not have been dismissed on the ground of limitation.
3. That in the peculiar circumstances of the case, keeping in the view of the order of the Hon’ble Delhi High Court dated 05.12.2023, the CIT(A) may be directed to hear the appeal on merits and dispose off in accordance with law.”
2. At the outset, the Ld. Counsel for the assessee submitted that the Ld. CIT(A) dismissed the assessee’s appeal by stated that the “since the appeal is being dismissed on account of being filed beyond the period prescribed under the Act, therefore, I am not expressing any opinion on merit of the case”. He also submitted that the Ld. CIT(A) erred in holding that there was a delay in filing the appeal for 180 days and not condoning the same. The Ld. CIT(A) ignored the Page 2 of 6
ITA No.- 2154/Del/2024 Bonlon Industries Limited. order of the Hon’ble Delhi High Court in Writ Petition No. (C)
15617/2023 & C.M. APPL. 62574-62574/2023 dated 05.12.2023, wherein it was clarified that if the appeal was filed before the Commissioner within two weeks, the same shall not be dismissed on the grounds of limitation. The relevant part of the order of the Hon’ble Delhi High Court read as under:
“1. After some arguments, learned counsel for the Petitioner wishes to withdraw the present writ petition with liberty to file an appeal in accordance with law.
However, to facilitate filing of the appeal, it is clarified that in the event the appeal is filed before the Commissioner within two weeks from today, the same shall not be dismissed on the ground of limitation.
3. With the aforesaid liberty, the present writ petition along with application stand dismissed. However, it is also clarified that this Court has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.”
On the other hand, Ld. Sr. DR. relied upon the orders of the authorities below.
We have heard the rival contention and perused the material available on record. It is evident from the facts that the Hon’ble Delhi High Court in its order dated 05.12.2023, specifically directed that if the appeal was filed before the Commissioner within two weeks; it shall not be dismissed on the ground of limitation. The Page 3 of 6
ITA No.- 2154/Del/2024 Bonlon Industries Limited. appellant has submitted that the appeal was filed on 13.12.2023 within the stipulated period. It is quite strange to observe that the Ld. CIT(A) ignored the direction given by Hon’ble jurisdictional High Court and decided the appeal on the ground of limitation only and specifically denied to dispose off the appeal on its merit. The Ld.
CIT(A) was bound by law to comply with the direction given by the Hon’ble jurisdictional High Court, but not only been ignored the same, but also did not even mentioned in the impugned order.
Thus, the action of the Ld. CIT(A) in dismissing the appeal on the ground of delay is not sustainable.
In the light of the order of the Hon’ble Delhi High Court and in the entire existing facts and circumstances of the case, we remitted back the matter to the Ld. CIT(A) with the direction to decide the matter on merits and pass order in accordance with law after giving the appellant proper and effective opportunity of being heard.
Consequently, matter is remitting back to the Ld. CIT(A) with the direction as mentioned above.
ITA No.- 2154/Del/2024 Bonlon Industries Limited. 6. Consequently, this appeal is allowed as indicated above for statistical purpose.
Order pronounced in the Open Court on 15.10.2024