21 months Delay in Filing Income Tax Appeal due to Covid Pandemic: ITAT condones Delay citing SC Ruling [Read Order]

The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) set aside the Commissioner of Income Tax (Appeals) order and allowed 21 months of delayed income tax appeal due to the COVID-19 pandemic. The ITAT cited the Supreme Court ruling in deciding the matter.

The Assessee, Lahari Impex (P) Ltd., a company in Hyderabad filed an appeal against the order of the Commissioner of Income Tax (Appeals) related to the assessment year 2009-10. The appeal was initially due on or before Match 29, 2020. The assessee failed to file the appeal due to the COVID-19 pandemic. The CIT(A) dismissed the appeal stating the appeal was filed beyond the time limit and refused to condone the delay.

Aggrieved by the Commissioner of Income Tax (A) decision, the assessee approached the ITAT, Hyderabad to file an appeal. The assessee's counsel represented by J.J. Varun  submitted that the delay caused in filing the appeal due to the COVID-19 pandemic which was beyond the control of the assessee. The assessee’s counsel prayed to condone the delay because it was a pandemic period and the appeal be heard on its merit.

On the other hand, the CIT(Appeals)’s counsel represented by Sheetal Sarin argued that it was the assessee's duty to take necessary action without causing any delay. The counsel opposed the request of the assessee.

The two-member bench of K. Narasimha Chary (Judicial Member) and Madhusudan Sawdia (Accountant Member) observed the arguments of both sides. The tribunal noted that the assessee delayed to appeal before the First Appellate Authority due to the pandemic situation and the Commissioner of Income Tax (A) denied condoning the delay. The tribunal stated that the entire country was locked down due to COVID-19 starting from March 25, 2020.

The Tribunal cited the Supreme Court in the Suo Motu proceedings in the case of M.A.No. 21/2022 in M.A.No. 665/2021 in SMW(C) No.3 of 2020 order dated 10.01.2022 held that the limitation which expired from 15.03.2020 and 28.02.2022 will have extension period of 90 days from 01.03.2022.

The tribunal that observed the assessee will be covered under the Supreme Court order and decided to allow the appeal by setting aside the CIT(A) impugned order. The appeal by the assessee deserves to be heard on merits.

The tribunal thus allowed the appeal for statistical purposes.

To Read the full text of the Order CLICK HERE

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