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Facts
The assessee filed an appeal before the ITAT against the order of the CIT(A) who dismissed the appeal on grounds of limitation. The assessee contended that the appeal was filed in physical form and was not delayed. The Tribunal noted that the CIT(A)'s notices did not mention any delay, but the dismissal order cited delay. A 2-day delay in filing the current appeal before the ITAT was condoned.
Held
The Tribunal held that the CIT(A) erred in dismissing the appeal on the ground of limitation without considering the assessee's contention that the appeal was filed in time. The matter was restored to the CIT(A) to decide the appeal on merits after providing an opportunity of hearing.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal on the ground of limitation without deciding the appeal on merits, and whether there was ambiguity in the CIT(A)'s communication regarding the delay.
Sections Cited
144, Rule 8d, 143(3), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 263/JP/2024
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh]U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 263/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2014-15 Sarthak Contracts Pvt. Ltd. cuke ACIT, 7-NA-21, Near PNB, Jawahar Nagar, Vs. Circle-5, Jaipur. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAMCS4205Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri C.L. Yadav (C.A.) & Shri Vikash Yadav (Adv.) jktLo dh vksj ls@ Revenue by : Shri Rajesh Kumar Meena , Addl.CIT a lquokbZ dh rkjh[k@ Date of Hearing : 02/05/2024 mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 01 /08/2024 vkns'k@ ORDER PER: DR. S. SEETHALAKSHMI, J.M. This appeal filed by the assessee is directed against order of the ld. CIT(A)-4 Jaipur dated 03-01-2024 for the assessment year 2014-15 raising therein following grounds of appeal.
1. The CIT(A) has erred in not deciding the appeal on merit, wherein disallowance under section 14A r.w. Rule 8d had been wrongly made by the AO.
2 SARTHAK CONTRACTS PVT LTD VS ACIT, CIRCLE-5, JAIPUR 2. the order passed by the ld. CIT(A) is void-ab-initio is as much as the same has been issued without a DIN, which is contrary to the CBDT Circular No. 19/2019 dated 14th August 2019.
The Ld. CIT(A) has erred in intimating the DIN number of the appellate order through a separate communication. Mentioning the simultaneous issue of the DIN number is an insignificant and superfluous exercise, in the absence of mentioning the DIN number in the body of the original communication.
4. The Ld. CIT(A) has erred in dismissing the appeal on the ground of limitation ignoring the decision of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. MST Katiji.
The Ld. CIT(A) has erred in dismissing the appeal ignoring the principle laid down by the Hon’ble Supreme Court that when substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be vested right in injustice being done because of a non-deliberate delay.
The Ld. CIT(A) has erred in dismissing the appeal holding it to be barred by limitation, not considering the fact that the appeal had been filed offline on 26.10.2016 and the appellant had been continuously receiving hearing notices from CIT(A)-2, Jaipur and had been complying them up to 2018.
2.1 At the outset of hearing, the Bench observed that there is delay of 2 days in filing the appeal by the assessee for which the ld. AR submitted that Form 36 uploaded by the assessee is not signed by the authorized person. He submitted that he got the Form 36 signed and uploaded. For this delay, the assessee apologized and submitted that the delay took place was not intentional and the same may kindly be condoned.
3 SARTHAK CONTRACTS PVT LTD VS ACIT, CIRCLE-5, JAIPUR On the other hand, the ld. DR objected to such delay but submitted that the 2.2 Court may decide the issue as deem fit and proper in the case.
2.3 After hearing both the parties and perusing the materials available on record, the Bench feels that the reasons as advanced by the ld. AR of the assesee in his submission has merit and the delay of 2 days in filing the appeal is condoned.
3.1 Further in this appeal, it is noted from the order of the ld. CIT(A) wherein he observed that there is delay of 2 years 2 months 2 days in filing the appeal by the assessee before him. The ld. CIT(A) elaborately discussed the issue in his order but conclusively he dismissed the appeal of the assessee by observing at page 8 of his order as under:-
‘’4…..The appellant has not shown any such reasons which prevented him from filing the appeal in time. In view of the discussion, the appeal cannot be admitted due to the delay and being out of period of limitation and the same is hereby dismissed in limine. Accordingly, the grounds of appeal are not required to be taken upon merits.
5. In the result, the appeal of the appellant is dismissed.’’ 3.2 During the course of hearing, the ld. AR of the assessee submitted that he had received a letter dated 26-11-2023 from CIT(A), Jaipur giving notice u/s 250 appeal and the details of the same are as under:-
GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE COMMISSIONER OF INCOME TAX, APPEAL CIT (A), Jaipur-4 To, SARTHAK CONTRACTS PRIVATE LIMITED 7-NA-21, NEAR PNB JAWAHAR NAGAR JAIPUR 302004 Rajasthan India PAN: Assessment Year DIN & Notice No: Date: 26/11/2023 Appeal Reference AAMCS4205Q 2014-15 Number: CIT (A), ITBA/APL/F/APL Jaipur- 1/2023- 2/11021/2018-19 24/1058241815(1) Notice under section 250 of the Income-tax Act, 1961 Dear Appellant, The Income Tax Department recognizes and is sensitive to the hardships being faced by taxpayers in coping with the challenges posed by COVID 19 pandemic 2. This communication is in connection with the above referred appeal preferred by you against the order under section 143(3) of of the Income-tax Act, 1961 passed by ACIT CIR-5,JPR on 07/10/2016 for the Assessment Year 2014-15 3. The uncertainty associated with the pending appeal may be adding to your anxiety. To mitigate your concerns, the Department proposes to take up the pending appeal so as to facilitate its expeditious disposal.
In support of your Grounds of Appeal
, you are requested to furnish Ground-wise written submission, along with supporting documentary evidence(s), if any. Further, you are also requested to provide the information/clarification/submission/documents as per annexure.
5. As you would undoubtedly agree, in these times of COVID-19, social distancing is of utmost Importance for ensuring your safety. Therefore, you may furnish the above written submission(s) and documents electronically in E-proceedings facility through your account in e-Filing Website ( www.incometaxindiaefiling.gov.in) on or before 15/12/2023 at 11:40 AM.
5 SARTHAK CONTRACTS PVT LTD VS ACIT, CIRCLE-5, JAIPUR 6. In case the submissions are made through your authorised representative, scanned copy of duly authorised Vakalatnama be uploaded simultaneously. 7. If no submissions/information/documents is/are received within the stipulated time period, it will be presumed that you have nothing to say in this matter. The Department may proceed ahead based on material available on record. Yours faithfully, Sd/- LOVISH KUMAR CIT(A), JAIPUR-4
ANNEXURE You are hereby informed that there is change of incumbent officer heading office of Commissioner of Income Tax, Appeals-4, Jaipur. You are hereby being provided opportunity to submit your submission/ reply, if any. In case the appellant wishes to rely on submissions & documents filed before the Assessing Officer, it is requested to submit copies of such documents alongwith the letter/certification that these were filed before the Assessing Officer in assessment proceedings.
In case any appellate authority has earlier in any year in your case decided an issue similar to issue which is pending in the present appeal, in that case you are requested to provide a copy of such appeal order. Vide this notice, your case is hereby fixed only for filing written submissions/reply. The case is hereby not fixed for personal hearing. In case you wish to avail personal hearing, you may attend the same on next date.
Yours faithfully, Sd/- LOVISH KUMAR CIT(A), JAIPUR-4 Copy to: ACIT/DCIT,CC-1, JAIPUR another notice of the ld CIT(A)s, Jaipur-4 wherein there is no mention of delay in filing the appeal and the another notice of the ld. CIT(A), Jaipur-4 is reproduced as under:-
GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE COMMISSIONER OF INCOME TAX, APPEAL CIT (A), Jaipur-4 To, SARTHAK CONTRACTS PRIVATE LIMITED 7-NA-21, NEAR PNB JAWAHAR NAGAR JAIPUR 302004 Rajasthan India PAN: Assessment Year DIN & Notice No: Date: 12/12/2023 Appeal Reference AAMCS4205Q 2014-15 ITBA/APL/F/APL Number: CIT (A), 1/2023- Jaipur- 24/1058694883(1) 2/11021/2018-19 Notice under section 250 of the Income-tax Act, 1961 Dear Appellant, The Income Tax Department recognizes and is sensitive to the hardships being faced by taxpayers in coping with the challenges posed by COVID 19 pandemic 2. This communication is in connection with the above referred appeal preferred by you against the order under section 143(3) of the Income-tax Act, 1961 passed by ACIT CIR-5,JPR on 07/10/2016 for the Assessment Year 2014-15 3. The uncertainty associated with the pending appeal may be adding to your anxiety. To mitigate your concerns, the Department proposes to take up the pending appeal so as to facilitate its expeditious disposal.
7 SARTHAK CONTRACTS PVT LTD VS ACIT, CIRCLE-5, JAIPUR 4. In support of your Grounds of Appeal
, you are requested to furnish Ground-wise written submission, along with supporting documentary evidence(s), if any. Further, you are also requested to provide the information/clarification/submission/documents as per annexure.
5. As you would undoubtedly agree, in these times of COVID-19, social distancing is of utmost Importance for ensuring your safety. Therefore, you may furnish the above written submission(s) and documents electronically in E-proceedings facility through your account in e-Filing Website ( www.incometaxindiaefiling.gov.in) on or before 22/12/2023 at 11:50 AM.
6. In case the submissions are made through your authorised representative, scanned copy of duly authorised Vakalatnama be uploaded simultaneously.
7. If no submissions/information/documents is/are received within the stipulated time period, it will be presumed that you have nothing to say in this matter. The Department may proceed ahead based on material available on record.