M/S NOORUL ISLAM TRUST,THODUPUZHA vs. ACIT (TDS), KOCHI, KOCHI

Heard both the parties. Case files perused.

It emerges during the course of hearing that there is hardly any of the Income Tax Act, 1961, [in short “the Act”] much requirement for us to deal with the relevant facts at length. Suffice to say, the assessee’s first the foremost six appeals to 448/Coch/2022 are not maintainable since involving proceedings under Section 220(2) of the Act which are no more appealable u/s. 246A as well as 253 of the Act before the CIT(A) as well as this tribunal respectively. These six appeals stand rejected therefore as not maintainable.Sois the outcome of the corresponding stay applications SA Nos. 17, 20, 21, 23, 25 & 27/Coch/2022.

The legal position would hardly be any different in assessee’s further as many appeals to 460/Coch/2022 involving interest demands under Section 201(1A) of the Act wherein the foregoing statutory provisions do not apply as clarified in the preceding paragraph. We further are of the view that the impugned interest computation is only consequential in nature not giving rise to an instant cause of action. These appeals ITA Nos. 455 to 460/Coch/2022 as well as the corresponding stay applications, SA Nos. 19, 30,31, 33, 35 & 36/Coch/22 fail therefore.

This leaves us with assessee’s six quantum appeals, to 466/Coch/2022 involving proceedings under Section 201(1) r.w.s. 201(1A) to 466/Coch/2022 3 SANos. 17 to 38/Coch/2022 M/s. Noorul Islam Trust of the Act wherein the learned lower authorities have treated it as an assessee in default for not deducting TDS on various payments. We note that the assessee had filed these six appeals with a delay of 1658 days. It had also placed on record condonation petition/affidavit before the CIT(A) quoting the reasons thereof to various communication gaps on account of the fact that the Assessing Officer’s corresponding orders had been misplaced in its office. We make it clear that the Assessing Officer had passed his order(s) in the issue on 23.03.2016 whereas the assessee had preferred its appeal before the CIT(A) on 31.12.2020. It has come on record therefore that most of the year 2020 witnessed Covid-19 lockdowns which itself forms sufficient reason for condonation of 365 days delay at least. The factual position would also extend to the remaining part of the delay wherein we quote the hon'ble apex court landmark decision in Collector Land Acquisition vs. Mst. Katiji & Ors(1987) 167 ITR 471 (SC); that all such technical aspects must make way for the cause of substantial justice. Faced with this situation and in light of the fact that the assessee has broadly explained delay with reasonable cause, we hold that the CIT(A) ought to have condoned the same followed by adequate opportunities for presenting it’s case(s) on merits.

Wereject the Revenue’s vehement contention supporting the CIT(A)’s reasoning therefore and restore these six quantum appeals to 446/Coch/2022 back to the CIT(A) for his afresh appropriate adjudication on merits. The same are allowed for statistical purposes therefore.

This leaves us with assessee’s last six penalty appeals to 454/Coch/2022 preferred in Section 271C proceedings initiated by the learned lower authorities for non-deduction of TDS. Suffice to say, we adopt our foregoing reasons herein as well to restore thesecases back to the CIT(A) in very terms. Ordered accordingly.

To sum up, 444, 445, 446, 447 &448/Coch/2022 and ITA Nos.455, 456, 457, 458, 459 &460/Coch/2022 are dismissed, ITA to 466/Coch/2022 4 SANos. 17 to 38/Coch/2022 M/s. Noorul Islam Trust Nos. 461, 462, 463, 464, 465 &466/Coch/2022 and 450, 451, 452, 453 & 454/Coch/2022 are allowed for statistical purposes. All the corresponding stay applications SA Nos.17 to 38/Coch./2022 in these cases stand disposed off in very terms. A copy of this common order be placed in respective case files.