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Facts
The assessee filed a return of income for AY 2018-19. The AO made additions to the income, and the assessee appealed to the CIT(A). The CIT(A) dismissed the appeal as it was filed beyond the prescribed time limit.
Held
The tribunal held that the appeal filing period fell within the period excluded by the Hon'ble Supreme Court in Suo Motu Writ Petition (C) No.3 of 2020. Therefore, the CIT(A) was not justified in dismissing the appeal on grounds of non-maintainability.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal on the grounds of limitation, considering the period excluded by the Supreme Court.
Sections Cited
143(3), 144B, Income-tax Act, 1961
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 22.08.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”).
The assessee has filed return of income showing total income of Rs. 36,56,93,015/- on 31.10.2018. The A.O has passed order making addition of interest income amounting to Rs. 4,84,46,344/- and addition of reserve release amounting to Rs. 58,94,968/-. Aggrieved, the assessee preferred an appeal before CIT(A) on 05.01.2022. The Ld CIT(A) held that the demand notice is dated 08.09.2021 and the assessee has filed appeal on 05.01.2022 which is beyond the statutory prescribed time limit for filling appeal. The Ld. CIT(A) did not condone the delay and dismissed the assessee’s appeal.
The Ld. Authorized Representative (A.R) of the assessee before us has submitted that there was no delay in filing the appeal as appeal was filled within the extended period of filling appeal . The Ld. AR submitted that the Hon’ble Supreme Court in Suo Motu Writ Petition (C) No.3 of 2020 dated 10.01.2022 has clarified that period from 15.03.2020 to 28.02.2022 shall be excluded in computing the limitation.
The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities.
We have heard the rival submissions, and perused the materials available on record. The assessee has filed the appeal on 05.01.2022 against the order passed by A.O on 08.09.2021, which is within the period excluded by Hon’ble Supreme Court, supra. Therefore, the Ld. CIT(A) was not justified to dismiss the appeal on non maintainability. We are of the opinion that the assessee has genuine reason for not filing the appeal within the time therefore, Ld. CIT(A) was not justified to not admit the appeal. We therefore, direct the Ld. CIT(A) to admit the appeal and adjudicate on merits in accordance with law, after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20th December, 2024.