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Facts
The assessee filed an appeal before the Ld. CIT(A) on 31.12.2021 against the assessment order dated 30.03.2021. The Ld. CIT(A) dismissed the appeal as un-admitted, treating it as beyond the time limit. The assessee contended that the filing period fell within the COVID-19 pandemic period, during which the Hon'ble Supreme Court extended the limitation period.
Held
The Tribunal held that the period between 15.03.2020 till 28.02.2022 was excluded for the purpose of limitation by the Hon'ble Supreme Court, and the CBDT also extended this relaxation. Therefore, the appeal filed by the assessee was within the permissible time limit.
Key Issues
Whether the appeal filed by the assessee was within the limitation period, considering the COVID-19 pandemic related extensions granted by the Hon'ble Supreme Court and CBDT.
Sections Cited
Section 23(4), Section 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015, Section 138 of the Negotiable Instruments Act, 1881
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Income Tax Appellate Tribunal, MUMBAI BENCH “B” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAJ KUMAR CHAUHAN
This appeal has been preferred by the assessee against order dated 28.12.2023 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2018-19, challenging the action of the Ld. CIT(A) dismissing the appeal as un-admitted.
Neeta Roshan Kewalramani Neeta Roshan Kewalramani
At the outset, the Ld. counsel for the assessee referred to At the outset, the Ld. counsel for the assessee referred to At the outset, the Ld. counsel for the assessee referred to Ground No. 3 of the appeal of the assessee, the Ld. counsel for the d No. 3 of the appeal of the assessee, the Ld. counsel for the d No. 3 of the appeal of the assessee, the Ld. counsel for the assessee submitted that the Ld. CIT(A) has treated the appeal filed assessee submitted that the Ld. CIT(A) has treated the appeal filed assessee submitted that the Ld. CIT(A) has treated the appeal filed by the assessee as as beyond the time and in absence of any beyond the time and in absence of any application for condonation of the delay, application for condonation of the delay, he dismissed ed the appeal as unadmitted. The Ld. counsel for the assessee however, submitted admitted. The Ld. counsel for the assessee however, submitted admitted. The Ld. counsel for the assessee however, submitted that order of the Ld. Assessing Officer is dated 30.03.2021 whereas that order of the Ld. Assessing Officer is dated 30.03.2021 whereas that order of the Ld. Assessing Officer is dated 30.03.2021 whereas the appeal before le CIT(A) le CIT(A) has been filed on 31.12.2021. The has been filed on 31.12.2021. The fact of the date of issue of the order by the Assessing Officer and filing of the date of issue of the order by the Assessing Offic the date of issue of the order by the Assessing Offic the appeal by the assessee are not disputed the appeal by the assessee are not disputed by the ld DR by the ld DR. The Ld. counsel for the assessee submitted that the period between counsel for the assessee submitted that the period between counsel for the assessee submitted that the period between 31.03.2021 and 30.03.2021 31.03.2021 and 30.03.2021 falls within the period within the period i.e. Covid Pandemic period, where the limitation for filing appe where the limitation for filing appeal has been where the limitation for filing appe in Civil Appeal No. Civil extended by the Hon’ble Supreme Court extended by the Hon’ble Supreme Court in Civil Appeal No. appeal no. 21 of 2022 in Miscellaneous Application No. 655 of 2021 appeal no. 21 of 2022 in Miscellaneous Application No. 655 of 2021 appeal no. 21 of 2022 in Miscellaneous Application No. 655 of 2021 in suo-motu writ petition (C) No. 3 of 2020. The CBDT also following writ petition (C) No. 3 of 2020. The CBDT also following writ petition (C) No. 3 of 2020. The CBDT also following the finding of the Hon’ble Supreme Court ext the finding of the Hon’ble Supreme Court extended the limitation ed the limitation for filing appeal before the ld CIT(A) for filing appeal before the ld CIT(A) during the period of the Covid during the period of the Covid Pandemic. Accordingly, there is no delay in filing the appeal and Pandemic. Accordingly, there is no delay in filing the appeal and Pandemic. Accordingly, there is no delay in filing the appeal and therefore, same should be admitted for adjudication and matter therefore, same should be admitted for adjudication and matter therefore, same should be admitted for adjudication and matter should be restored back to the Ld. C should be restored back to the Ld. CIT(A) for deciding afresh. IT(A) for deciding afresh.
We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the relevant material on record. It is undisputed that the assessment relevant material on record. It is undisputed that the assessment relevant material on record. It is undisputed that the assessment order has been passed by the Ld. Assessing Officer on 30.03.2021 order has been passed by the Ld. Assessing Officer on 30.03.2021 order has been passed by the Ld. Assessing Officer on 30.03.2021
Neeta Roshan Kewalramani Neeta Roshan Kewalramani and appeal has been filed by the and appeal has been filed by the assessee before the Ld. CIT(A) on assessee before the Ld. CIT(A) on 31.12.2021. This period falls within the period 31.12.2021. This period falls within the period excluded excluded by the Hon’ble Supreme Court (supra) Hon’ble Supreme Court (supra) for considering limiation for considering limiation. The relevant finding of the Hon’ble Supreme Court in reproduced as relevant finding of the Hon’ble Supreme Court in reproduced as relevant finding of the Hon’ble Supreme Court in reproduced as under:
“5. Taking into consideration the arguments advanced by learned counsel consideration the arguments advanced by learned counsel consideration the arguments advanced by learned counsel and the Impact of the surge of the virus on public health and adversities and the Impact of the surge of the virus on public health and adversities and the Impact of the surge of the virus on public health and adversities faced by litigants in the prevailing conditions, we deem it appropriate to faced by litigants in the prevailing conditions, we deem it appropriate to faced by litigants in the prevailing conditions, we deem it appropriate to dispose of the M.A. No. 21 of 2022 with the followi dispose of the M.A. No. 21 of 2022 with the following directions: ng directions: I The order dated 23.03.2020 is restored and in continuation of the The order dated 23.03.2020 is restored and in continuation of the The order dated 23.03.2020 is restored and in continuation of the subsequent orders dated 08.03.2021, 27.04.2021 and 23.09.2021, subsequent orders dated 08.03.2021, 27.04.2021 and 23.09.2021, subsequent orders dated 08.03.2021, 27.04.2021 and 23.09.2021, it is directed that the period from 15.03.2020 till 28.02.2022 it is directed that the period from 15.03.2020 till 28.02.2022 it is directed that the period from 15.03.2020 till 28.02.2022 shall stand excluded for the purposes of limit shall stand excluded for the purposes of limitation as may be ation as may be prescribed under any general or special laws in respect of all prescribed under any general or special laws in respect of all prescribed under any general or special laws in respect of all judicial or quasi judicial or quasi- judicial proceedings. II. Consequently, the balance period of limitation remaining as on Consequently, the balance period of limitation remaining as on Consequently, the balance period of limitation remaining as on 03.10.2021, if any, shall become available with effect. from 03.10.2021, if any, shall become available with effect. from 03.10.2021, if any, shall become available with effect. from 01.03.2022.
III. In cases where the limitation would have expired during the period In cases where the limitation would have expired during the period In cases where the limitation would have expired during the period between 15.03.2020 till 28.02.2022, notwithstanding the actual between 15.03.2020 till 28.02.2022, notwithstanding the actual between 15.03.2020 till 28.02.2022, notwithstanding the actual balance period of limitation remaining, all persons shall have a balance period of limitation remaining, all persons shall have a balance period of limitation remaining, all persons shall have a limitation period of 90 days from 01.03.2022. In t limitation period of 90 days from 01.03.2022. In the event the actual he event the actual balance period of limitation remaining, with effect from 01.03.2022 balance period of limitation remaining, with effect from 01.03.2022 balance period of limitation remaining, with effect from 01.03.2022 is greater than 90 days, that longer period shall apply. is greater than 90 days, that longer period shall apply. is greater than 90 days, that longer period shall apply. IV. It is further clarified that the period from 15.03.2020 till 28.02.2022 It is further clarified that the period from 15.03.2020 till 28.02.2022 It is further clarified that the period from 15.03.2020 till 28.02.2022 shall also stand excluded in compu shall also stand excluded in computing the periods prescribed under ting the periods prescribed under Sections 23 (4) and 29A of the Arbitration and Conciliation Act, Sections 23 (4) and 29A of the Arbitration and Conciliation Act, Sections 23 (4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos 1996, Section 12A of the Commercial Courts Act, 2015 and provisos 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act. 1881 (b) and (c) of Section 138 of the Negotiable Instruments Act. 1881 (b) and (c) of Section 138 of the Negotiable Instruments Act. 1881 and any other laws, whic and any other laws, which prescribe period(s) of limitation for h prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or instituting proceedings, outer limits (within which the court or instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings.” tribunal can condone delay) and termination of proceedings.” tribunal can condone delay) and termination of proceedings.” 3.1 Further, the CBDT vide circular No. 10/2021 dated 25th May Further, the CBDT vide circular No. 10/2021 dated 25th May Further, the CBDT vide circular No. 10/2021 dated 25th May 2021 has clarified as under clarified as under:
Circular No. 10.2021 Circular No. 10.2021 F.NO.225/40/2021/ATA-II
Neeta Roshan Kewalramani Neeta Roshan Kewalramani
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 25 May, 2021 New Delhi, Dated 25 May, 2021 Subject: Clarification regarding the limitation time for filing of appeals before Subject: Clarification regarding the limitation time for filing of appeals before Subject: Clarification regarding the limitation time for filing of appeals before the CIT(Appeals) under the income CIT(Appeals) under the income-tax Act, 1961(the Act) 1. The Central Board of Direct Taxes has issued Circular No. 8 of 2021 on 30 1. The Central Board of Direct Taxes has issued Circular No. 8 of 2021 on 30 1. The Central Board of Direct Taxes has issued Circular No. 8 of 2021 on 30 April 2021 providing various relaxations till 31 May 2021 including extending April 2021 providing various relaxations till 31 May 2021 including extending April 2021 providing various relaxations till 31 May 2021 including extending time for flling the appeals before CIT(Appeals). At the same time, the Hon'bie time for flling the appeals before CIT(Appeals). At the same time, the Hon'bie Supreme Court vide order dated 27 April 2021 in Suo Motu Writ Petition (Civil) Supreme Court vide order dated 27 April 2021 in Suo Motu Writ Petition (Civil) Supreme Court vide order dated 27 April 2021 in Suo Motu Writ Petition (Civil) No.3 of 2020 restored the order dated 23 March, 2020 and in continuation of No.3 of 2020 restored the order dated 23 March, 2020 and in continuation of No.3 of 2020 restored the order dated 23 March, 2020 and in continuation of the order dated 8 March, 2021 directed that the period(s) of limitation, as the order dated 8 March, 2021 directed that the period(s) of limitatio the order dated 8 March, 2021 directed that the period(s) of limitatio prescribed under any General or Special Laws in respect of all judicial or prescribed under any General or Special Laws in respect of all judicial or prescribed under any General or Special Laws in respect of all judicial or quasi-judicial proceedings, whether condonable or not, shall stand extended till judicial proceedings, whether condonable or not, shall stand extended till judicial proceedings, whether condonable or not, shall stand extended till further orders 2. The Central Board of Direct Taxes, clarifies that if different relaxations, are 2. The Central Board of Direct Taxes, clarifies that if different relaxations, 2. The Central Board of Direct Taxes, clarifies that if different relaxations, available to the taxpayers for a particular compliance, the taxpayer is entitled available to the taxpayers for a particular compliance, the taxpayer is entitled available to the taxpayers for a particular compliance, the taxpayer is entitled to the relaxation. which is more beneficial to him. Thus, for the purpose of to the relaxation. which is more beneficial to him. Thus, for the purpose of to the relaxation. which is more beneficial to him. Thus, for the purpose of counting the period(s) of limitation for filing of appeals before the CIT(Appeals) counting the period(s) of limitation for filing of appeals before the CIT(Appeals) counting the period(s) of limitation for filing of appeals before the CIT(Appeals) under the Act, the taxpayer is entitled to a relaxation which is more beneficial ct, the taxpayer is entitled to a relaxation which is more beneficial ct, the taxpayer is entitled to a relaxation which is more beneficial to him and hence the said limitation stands extended till further orders as to him and hence the said limitation stands extended till further orders as to him and hence the said limitation stands extended till further orders as ordered by the Hon'ble Supreme Court in Suo Motu Writ Petition (Civil) No.3 of ordered by the Hon'ble Supreme Court in Suo Motu Writ Petition (Civil) No.3 of ordered by the Hon'ble Supreme Court in Suo Motu Writ Petition (Civil) No.3 of 2020 vide order dated 27 April 2021. 2020 vide order dated 27 April Sd/- (Prajna Paramita) (Prajna Paramita) Director to the Government of India. Director to the Government of India. 3.1 The period of delay pointed out, the Ld. CIT(A) falls within the The period of delay pointed out, the Ld. CIT(A) falls within the The period of delay pointed out, the Ld. CIT(A) falls within the period excluded by the Hon’ble Supreme Court by the Hon’ble Supreme Court for the purpose of for the purpose of limitation and therefore, there is no del and therefore, there is no delay in filing the appeal. ay in filing the appeal. Accordingly, we direct the Ld. CIT(A) to admit the appeal and decide Accordingly, we direct the Ld. CIT(A) to admit the appeal and decide Accordingly, we direct the Ld. CIT(A) to admit the appeal and decide the addition in merit after providing adequate opportunity of being the addition in merit after providing adequate opportunity of being the addition in merit after providing adequate opportunity of being heard to the assessee. Since, we have already restored the matter heard to the assessee. Since, we have already restored the matter heard to the assessee. Since, we have already restored the matter back to the file of the Ld. back to the file of the Ld. CIT(A), the grounds raised on merit are CIT(A), the grounds raised on merit are not required to be adjudicated to be adjudicated upon at this stage. The appeal of the upon at this stage. The appeal of the assessee is accordingly allowed for s assessee is accordingly allowed for statistical purposes. tatistical purposes.
Neeta Roshan Kewalramani Neeta Roshan Kewalramani
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 30 nounced in the open Court on 30/05/2024. /05/2024.