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Facts
The assessee filed an appeal before the CIT(A) with a delay of 132 days, which was dismissed in limine without deciding on merits. The assessment order was passed on 25.03.2021, and the appeal was filed on 03.09.2021. The assessee argued that the delay fell within the COVID period, for which the Supreme Court had extended the limitation.
Held
The Tribunal held that the appeal could not be treated as belated due to the Hon'ble Supreme Court's orders extending limitation during the COVID period. The CIT(A) erred in not deciding the issues on merits.
Key Issues
Whether the CIT(A) erred in dismissing the appeal in limine due to delay without considering the COVID period extensions granted by the Supreme Court, and consequently failing to decide the issues on merits.
Sections Cited
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Income Tax Appellate Tribunal, SMC-‘B’ BENCH : BANGALORE
Before: SMT. BEENA PILLAI & SHRI LAXMI PRASAD SAHU
ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal arises out of order passed by NFAC Delhi dated 18.02.2024 for A.Y. 2018-19.
The Ld.AR at the outset submitted that there was delay of 132 days in filing the appeal before the Ld.CIT(A), which was not condoned, and the appeal was dismissed in limine without deciding on merits. It is submitted that the assessment order was passed on 25.03.2021, when the COVID period started and the assessee filed the appeal before the Ld.CIT(A) on 03.09.2021 causing a delay of 132 days.
The Ld.AR submitted that in any event the Hon'ble Supreme Court vide order dated 23.03.2020 extended suomoto limitation that fell within the COVID period starting from 24.03.2021 to 30.05.2022. The Ld.AR thus submitted that the delay assumed by Ld.CIT(A) is within the COVID period and therefore prayed for the appeal to be remanded to the Ld.CIT(A) on consideration of the issues on merits.
The Ld.DR relied on the orders passed by authorities below. We have perused the submissions advanced by both sides in the light of records placed before us.
There is no doubt that the present appeal cannot be treated in the category of a belated appeal filed before the Ld.CIT(A) pursuant to the orders of Hon’ble Supreme Court (supra). The Ld.CIT(A) grossly erred in not deciding the issues raised by assessee on merits. We remand the appeal back to the Ld.CIT(A) to consider the issues on merits and pass a detailed order having regard to the evidences filed by the assessee.
Page 3 of Needless to say that proper opportunity of being heard must be granted to the assessee. Accordingly, the grounds raised by assessee stands partly allowed for statistical purposes. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 24th June, 2024.