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Facts
The assessee's appeal for AY 2016-17 arises from an order passed by the PCIT under Section 263 of the Income-tax Act. The assessee did not appear for the hearing, and the proceedings were conducted ex parte. Section 263 notices were issued during the Covid-19 pandemic.
Held
The Tribunal noted that the section 263 proceedings were initiated and completed during the period of the Covid-19 pandemic, which was ordered to be excluded for limitation purposes by the Supreme Court. Therefore, the Tribunal restored the appeal to the PCIT for adjudication.
Key Issues
Whether proceedings initiated and completed during the excluded period of the Covid-19 pandemic under Section 263 are valid.
Sections Cited
263
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for assessment year 2016-17, arises against the Principal Commissioner of Income Tax, Gwalior’s order F. No. Pr.CIT/Gwl/263/2020-21 dated 26.03.2021, involving proceedings under section 263 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Case called twice. None appears at the assessee’s behest. We, accordingly, proceeded ex parte against him. 3. It emerges from the case file that section 263 notices had been issued during the Covid-19 pandemic. Faced with this situation, the Revenue could hardly dispute the clinching fact that the PCIT has initiated and completed the section 263 proceedings in the Covid-19 pandemic outbreak period from 15.03.2020 to 28.02.2022 despite the fact this period has already been ordered to be excluded as per hon’ble apex court landmark directions in Cognizance for Extension of Limitation, in re (2022)441 ITR 722(SC). We, therefore, deem it appropriate to restore the assessee’s instant appeal back to the learned PCIT for his appropriate adjudication subject to a rider that assessee shall plead and prove this case within three effective opportunities at his own risk and responsibility, in consequential proceedings. Ordered accordingly.
This assessee’s appeal is allowed for statistical purpose. Order pronounced in the open court on11THFebruary, 2025.