775 Days Delay in filing Income Tax Appeal Due to Covid 19 Restrictions: ITAT Directs CIT(A) to Apply Delay Exclusion [Read Order]

The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) directed the Commissioner of Income Tax (Appeals)[CIT(A)] to apply the delay exclusion for a 775-day delay in filing the Income Tax appeal due to Covid-19 restrictions.

Keshav Madhav Steel Pvt. Ltd., appellant-assessee, challenged the order passed by the CIT(A)/National Faceless Appeal Centre ( NFAC ) on 22.04.2024, for the assessment year 2017-18, in proceedings under section 250 of the Act.

Section 250 of the Income Tax Act, 1961, deals with the process of appeals before the CIT. It allows a person aggrieved by an order of the Assessing Officer to file an appeal with the CIT (A) within 30 days from the date of the order. The CIT (A) has the authority to confirm, modify, or annul the assessment order.

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It also grants the CIT (A) the discretion to condone delays in filing an appeal if sufficient reasons are provided, though such decisions are subject to legal scrutiny. The section ensures that taxpayers have a formal channel to challenge and seek resolution of disputes related to tax assessments.

A single member bench comprising Satbeer Singh Godara ( Judicial Member ) heard both parties and noted that the CIT(A)/ NFAC had refused to condone the 775-day delay in filing the appeal, citing a lack of supportive material in the condonation petition.

The Departmental Representative ( DR ) acknowledged that the Supreme Court's decision in Cognizance For Extension Of Limitation in re. (2022) had excluded the period from 15.3.2020 to 28.2.2022 due to the Covid-19 pandemic for all limitation purposes. Given this, the Tribunal found the CIT(A)/NFAC's decision to be incorrect and unsustainable in law.

The appellate tribunal restored the appeal to the CIT(A)/NFAC for fresh adjudication, with the condition that the assessee must prove all relevant facts in the proceedings.

In short the appeal filed by the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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