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Income Tax Appellate Tribunal, VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE
PER DUVVURU RL REDDY, Judicial Member :
This appeal filed by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“Ld. CIT(A)-NFAC”] in DIN & Order No. ITBA/APL/S/250/2023-24/1061126250(1), dated 19/02/2024 arising out of the order passed U/s. 143(1) of the Income Tax Act, 1961 [“the Act”] for the AY 2018-19.
2 2. Briefly stated the facts of the case are that the assessee is a Trust registered U/s. 12AA of the Act w.e.f 1/4/2003 vide order dated 29/07/2003 of the Ld. CIT, Vijayawada. The assessee is also running educational institutions. The assessee has e-filed its return of income for the AY 2018-19 on 26/09/2019 declaring total income of Rs. NIL after claiming deduction U/s. 11 of the Act. The return was processed U/s. 143(1) of the Act. In the intimation issued U/s. 143(1) of the Act, dated 30/12/2020, the DDIT/ADIT-CPC computed the total income of the assessee at Rs. 5,36,171/- after making adjustment / disallowance on account of denial of exemption claimed U/s. 11 of the Act at Rs. 5,36,171/-. Aggrieved by adjustment / disallowance made by the DDIT/ADIT- CPC, the assessee preferred an appeal before the Ld. CIT(A)-NFAC with a delay of 113 days, excluding the extended period granted by the Hon’ble Supreme Court due to COVID.
3. On appeal, before the Ld. CIT(A)-NFAC the assessee filed a petition for condonation of delay vide letter dated 15/11/2022 wherein the assessee has elaborately explained the reasons that prevented the assessee to file the appeal with a delay of 113 days before the Ld. CIT(A)-NFAC and sought for condonation of delay. However, the Ld. CIT(A)-NFAC observed that the intimation U/s. 3 143(1) of the Act was passed on 30/12/2020 whereas the appeal was filed on 19/09/2022 which is beyond the statutory time limit provided for filing the appeal. Therefore, the Ld. CIT(A)-NFAC following the time limit specified U/s. 249(2) of the Act concluded that since there is no sufficient cause for condonation of delay in filing the appeal, the assessee’s appeal is not maintainable. Thus, the Ld. CIT(A)-NFAC did not condone the delay and dismissed the appeal. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before the Tribunal by raising the following grounds of appeal:
“1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case.
The Ld. CIT(A) is not justified in dismissing the appeal as not maintainable by rejecting the petition filed for condonation of delay.
Without prejudice to the above, the Ld. CIT(A) ought to have appreciated that the CPC has erred in not granting exemption U/s. 5,36,171/- claimed U/s. 11 of the Act without considering the fact that the appellant is having registration U/s. 12A of the Act.
Any other ground that may be urged at the time of hearing.”
4. At the outset, the Ld. Authorized Representative [AR] submitted that the Ld. CIT(A)-NFAC ought to have considered the explanation of the assessee with respect to the condonation of 4 delay in filing the appeal before the Ld. CIT(A)-NFAC as the assessee was prevented by a reasonable and sufficient cause ie., COVID and death of the assessee’s Chartered Accountant due to COVID. The Ld. AR further submitted that in support of the reasons advanced by the assessee for filing of the appeal beyond the prescribed time limit before the Ld. CIT(A)-NFAC, the assessee has also made detailed written submissions explaining the reasons for belated filing of the appeal. The Ld. AR further submitted that the delay in filing the appeal is not on account of negligence or any deliberate act of the assessee. The Ld. AR also pleaded that the assessee became aware of the assessment proceedings only when Sri Chitneni Venkateswara Rao, the Managing Trustee received a message to his personal phone on 7/9/2022. Immediately, the assessee pursued the matter and took steps and filed the appeal before the Ld. CIT(A)-NFAC on 19/09/2022. The Ld. AR therefore pleaded that without considering the explanation and the submissions of the assessee, the Ld. CIT(A)-NAFC dismissed the appeal of the assessee by denying the condonation petition filed before him. The Ld. AR therefore pleaded that the matter may be remitted back to the file of the Ld. CIT(A)-NFAC to decide the appeal on merits.
5 5. On the other hand, the Ld. Departmental Representative [DR] heavily relied on the orders of the Ld. Revenue Authorities. The Ld. DR further submitted that before the Ld. CIT(A)-NFAC even though there is a delay, the onus is on the assessee to explain each day’s delay with proper evidence. The Ld. DR also submitted that since the assessee has not discharged his onus with regard to explaining the reason for condonation of delay, the Ld. CIT(A)-NFAC has rightly dismissed the appeal of the assessee as inadmissible. In toto, the Ld. DR supported the decision of the Ld. Revenue Authorities and pleaded to uphold the decision of the Ld. Revenue Authorities.
I have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. It is a fact that on being aggrieved by the adjustment / disallowance made by the DDIT/ADIT-CPC, the assessee preferred an appeal before the Ld. CIT(A)-NFAC with a delay of 113 days. On perusal of the appeal record placed before me, it appears that with respect to the belated filing of the appeal, the assessee has explained its reasons by stating that due to COVID pandemic and death of the assessee’s Chartered Accountant because of COVID, the appeal could not be filed within the 6 stipulated time before the Ld. CIT(A)-NFAC. Further, in support of the reasons advanced by the assessee, the assessee has also explained that even though the Intimation U/s. 143(1) of the Act was passed on 30/12/2020, due to COVID, the Hon’ble Supreme Court has granted / extended the time for filing the appeals, vide their orders of various dates and latest by 10/01/2022. Further, the assessee has also explained that the death of assessee’s Chartered Accountant also affected majorly for belated filing of the appeal before the Ld. CIT(A)-NFAC. In this situation, the Ld. CIT(A)-NFAC ought to have considered the explanation given by the assessee for belated filing of the appeal and ought to have disposed of the appeal on merits. Instead, the Ld. CIT(A)-NFAC dismissed the assessee’s appeal as not maintainable. This Bench cannot appreciate the decision of the Ld. CIT(A)-NFAC while dismissing the appeal of the assessee the Ld. CIT(A)-NFAC failed to appreciate the COVID pandemic situation explained by the assessee as well as the decision of the Hon’ble Supreme Court, dated 10/02/2020 with respect to extension of the time limit for filing of the appeals. Therefore, I am of the considered view that it is a fit case to condone the delay in filing the appeal before the Ld. CIT(A)-NFAC since there is no willful negligence or latches on the part of the assessee. Therefore, I hereby set-aside the order 7 passed by the Ld. CIT(A)-NFAC and thereby remit the matter back to the file of the Ld. CIT(A)-NFAC with a direction to dispose of the appeal on merits after affording a reasonable opportunity of being heard to the assessee in accordance with the principles of natural justice. Further, I also hereby caution the assessee to cooperate before the Ld. CIT(A)-NFAC in their proceedings, otherwise Ld. Revenue Authorities are at liberty to pass orders in accordance with law based on the material available on record. It is ordered accordingly.
In the result, appeal of the assessee is allowed for statistical purposes as indicated herein above.
Pronounced in the open Court on 14th August, 2024. Sd/- (दु�वू� आर.एल रे�ी) (DUVVURU RL REDDY) �याियकसद�य/JUDICIAL MEMBER Dated :14/08/2024 OKK - SPS आदेश की �ितिलिप अ�ेिषत /Copy of the order forwarded to:- 1. िनधा�रती/ The Assessee – Sivanandaguru Educational and Cultural Trust, D.No. 43-2, Balusupadu Village, Jaggayyapet Mandal, Krishna District, Andhra Pradesh – 52115. 2. राज�व/The Revenue –Income Tax Officer, Exemption Ward, O/o. ITO, Aayakar Bhavan, Veerabhadrapuram, Rajahmundry, Andhra Pradesh – 533105.