Loading judgment…
Facts
The assessee's appeal was dismissed in limine by the CIT(A) on the grounds of limitation. The assessee contends that the assessment order was passed during the Covid-19 pandemic, and the Hon'ble Supreme Court extended the limitation period. The assessee also claims that the assessment order was passed without proper notice, preventing participation.
Held
The Tribunal held that the CIT(A) erred in dismissing the appeal on the grounds of limitation, as the appeal was filed within the extended period granted due to the Covid-19 pandemic. The Tribunal also noted that the assessee did not receive notice for the reopening of assessment.
Key Issues
Whether the appeal was filed within the limitation period, considering the Covid-19 pandemic extension, and whether the assessee received proper notice for reassessment proceedings.
Sections Cited
Section 144, Section 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Mumbai “SMC” Bench, Mumbai.
Before: Shri Vikas Awasthy (JM) & Shri Amarjit Singh (AM)
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 13.10.2023, for Assessment Year 2013-14.
Shri Tanmay Milind Phadke appearing on behalf of the assessee submitted that the CIT(A) has dismissed the appeal of the assessee in limine on the ground of limitation. He submitted that the assessment order was passed on 24.9.2021 i.e. during Covid-19 Pandemic period. The Hon’ble Supreme Court of India considering the hardship caused to the litigants during pandemic in suo motto proceedings had extended period of limitation in filing of the appeals upto 28.2.2022. The assessee filed the appeal before the CIT(A) on 2.2.2022. Thus, there was no delay in filing appeal before the First Appellate Authority. He further submitted that the assessment order has been framed at the back of assessee. The assessee did not receive any notice/intimation regarding reopening of assessment. Hence, the assessee could not participate in reassessment proceedings.
2 Harshal Suresh Karvir
Per contra, Shri Krishna Kumar representing the Department strongly supported the impugned order and prayed for dismissing appeal of the assessee. The learned DR submitted that the assessee has been non- cooperative during the assessment proceedings, therefore the Assessing Officer was constrained to complete the assessment under section 144 read with section 147 of the Income Tax Act, 1961 (herein after referred to as ‘the Act’). The appeal before the CIT(A) was filed by the assessee after the expiry of period of limitation as specified under the Act, without explaining the reasons causing delay in filing the appeal.
We have heard the submissions made by the rival sides and have examined the orders of the authorities below. The CIT(A) has dismissed the appeal on the ground of limitation. A perusal of assessment order reveals that the order was passed on 24.9.2021 i.e. during Covid-19 Pandemic period. The Hon'ble Supreme Court of India in suo motto proceedings in case titled Cognizance for extension of Limitation, In re. reported as 441 ITR 722 (SC) to mitigate the hardship caused by Covid-19 Pandemic directed to exclude period from 15.3.2020 to 28.2.2022 for the purpose of calculating period of limitation for filing of an appeal/suit/application under various laws, wherever, the period of limitation is prescribed. The assessee had filed the appeal on 2.2.2022 hence, there was no delay in filing the appeal before the CIT(A). The CIT(A) has erred in dismissing appeal of the assessee on the ground of limitation. Ergo, the impugned order is liable to be quashed.
We further find that the assessment has been framed under section 147 read with section 144 of the Act. The ld. Counsel for assessee has contended that the assessee has not received any notice for reopening the assessment or any notice thereafter. Hence, the assessee was not even aware that the assessment for A.Y. 2013-14 has been reopened. Therefore, the assessee could not participate in assessment proceedings. Taking into consideration entire facts of the case, we deem it appropriate to restore this 3 Harshal Suresh Karvir appeal to the Assessing Officer for making fresh assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law. The assessee shall furnish his current functional e-mail ID to the Assessing Officer for service of notice. The assessee shall positively respond to the notice served by the Assessing Officer. In case, the assessee fails to respond to the notice served by the Assessing Officer, the Assessing Officer shall be at liberty to take adverse view.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on Tuesday the 7th Day of May, 2024.