M/S. CROTON TRADING PVT. LTD.,KOLKATA vs. A.O., CPC, BENGLURU, BANGALORE

The captioned appeal has been preferred by the assessee against the order dated 04.07.2024 of the Ld. Commissioner of Income Tax, (Appeal), Addl./JCIT(A), Chandigarh [hereinafter referred to as the “Ld. CIT(A)”] passed u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for AY 2019-20.

The appeal is barred by limitation period of 15 days. A separate application for condonation of delay has been filed. Considering the averments made in the application and the shortness of the delay period, the delay in filing the present appeal is hereby condoned.

At the outset, the Ld. Counsel for the assessee has brought our attention to the impugned order of the Ld. CIT(A) to submit that the Ld. CIT(A) has dismissed the appeal of the assessee being barred by limitation. The Ld. Counsel in this respect has explained that though there is a delay M/s. Croton Trading Pvt. Ltd., AYs 2019-20 of 1226 days in filing the appeal before the Ld. CIT(A), however, excluding the Covid period, the effective delay in filing the appeal is of 457 days.

The Ld. Counsel has further explained that in this appeal, the assessee is aggrieved by the action of the AO in making certain adjustments while processing the return of the assessee u/s. 143(1) of the Act. He has further submitted that in fact, the assessee earlier had filed a rectification application u/s. 154 of the Act to the AO against the said adjustment made by him. However, the said rectification application of the assessee filed u/s. 154 of the Act has not been decided by the AO till date. He in this respect has submitted that since the AO did not decide the rectification application for a long time, the assessee perforce filed the appeal before the Ld. CIT(A) u/s. 250 of the Act. He, therefore, submitted that the delay caused in filing the appeal before the Ld. CIT(A) was not intentional but was due to inaction on the part of the AO in deciding the rectification application u/s. 154 of the Act.

Considering the above submissions of the Ld. Counsel for the assessee, the impugned order of the Ld. CIT(A) is set aside. The delay in filing the appeal before the Ld. CIT(A) is hereby condoned. The matter is restored to the file of the Ld. CIT(A) for deciding it afresh on merits irrespective of the delay in filing the appeal before him. Needless to say that the Ld. CIT(A) will pass a speaking order after affording proper opportunity of hearing to the assessee in accordance with law. Appeal of the assessee is treated as allowed for statistical purposes.