GURINDERSINGH INDRAJEETSINGH NAYYAR,NAGPUR vs. DCIT/ACIT CIRCLE-2, NAGPUR

In its appeal, the assessee has raised following grounds:–

We have examined the facts of the case. There is a delay of 4 days in filing the appeal before us. The assessee has filed an affidavit disclosing the reasons for delay in filing the appeal and requested for admission of the appeal. Considering the reasons and smallness of delay, the same is condoned and proceed to ride the cycle of adjudication.

The learned AR submitted that, present appeal was filed against the order passed by the learned CIT(A) whereby, the learned CIT(A) did not admit the appeal of the assessee on the ground that the said appeal was filed with a delay of 121 days. The learned AR submitted that, there was a delay in filing the appeal before CIT(A) based on reasonable grounds. The AR submitted that, the reassessment proceedings for AY 2014-15 were carried down during the COVID period and finally the assessment order was passed on 19th March 2022. Thus, the notices issued during the reassessment proceedings could not be complied with by the assessee. Further, it was only when the notice under section 271(1)(b) was issued for non-compliance dated 28th July 2022, the assessee came to know about the ex-parte order passed under section 147 r.w.s. section 144 dated 19th March 2022. Thereafter, the assessee immediately consulted his counsel and arranged to file the appeal before learned CIT(A) on 17/08/2022.

The learned AR also submitted that, during appellate proceedings before learned CIT(A), the assessee was asked to furnish his written submissions on merits. The assessee had furnished a written submission on merit copy of which is also enclosed the paper book. However, it seems that, the learned CIT(A) has ultimately passed the order on the limitation ground and not on merits of the case. It is quite peculiar that the appeal can be taken up for hearing only when delay is condoned. It seems that the learned CIT(A) had condoned the delay.

We find that, the reassessment proceedings were indeed carried out during the COVID period. There were difficulties faced by the assessee and their consultants during the COVID period for making due compliances. The Hon’ble Supreme Court had taken cognizance of the difficultly faced during COVID period and vide their order passed in Suo Moto Writ petition No.3 of 2020 extended the time for making various statutory compliances. The Hon’ble Supreme Court had excluded period between 15 March 2020 to 28 February 2022 from the limitation period for making the compliances in respect of orders passed between the aforementioned period. Further the Hon’ble Supreme Court has also provided a further period of 90 days starting from 01st march 2022 for making the due compliances which fell due during aforementioned period. Hence, we feel that the assessee was precluded from effectively participating in the proceedings. The delay of 121 days before the learned CIT(A) will be pruned accordingly in line of the above contention.

Therefore, having considered the facts of the case, with a view to advance substantial justice, we hereby condone the delay in filing the appeal before learned CIT(A). We find that, the assessee could not appear before the learned AO during assessment proceedings and best judgement assessment order was passed. Therefore, we hereby restore the matter back to the files of jurisdictional AO to decide the same on merits since the appeal of discord lies in a narrow compass. Therefore, the appeal of assessee stands allowed for statistical purposes.

In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 18/09/2024