In an assessee-friendly ruling, the Bangalore bench of the Income Tax Appellate Tribunal (ITAT) comprising Shri N. V. Vasudevan, Vice President and Shri Chandra Poojari, Accountant Member has observed that the facts that assessee failed to respond to income tax notices due to pandemic situation is a reasonable cause for delay and therefore, directed the income tax department to conduct fresh proceedings to avoid violation of natural justice principles.
The assessee, M/s. Madanthyar Primary Agricultural Credit Co-operative Society was aggrieved by the ex-parte order of the Commissioner of Income Tax (Appeals) confirming laevy of late fee under section 234E of the Act since there was a delay in filing the above TDS statement.
Observing that there is no delay in appeal, the Tribunal held that “even the Hon’ble Supreme Court has taken cognisance of the pandemic situation and extended the period of limitation. It is clear from the order of the CIT(A) that the notices in question were issued during the covid period and the Assessee’s contention that it could not respond to the notices in view of the pandemic situation has to be accepted as a reasonable cause. In the given facts and circumstances, we are of the view that the Assessee deserves an opportunity of being heard before the CIT(A). Accordingly, the orders of the CIT(A) are set aside and the issue remanded to the CIT(A) for a decision afresh after affording Assessee opportunity of being heard. The Assessee is directed to co-operate in the proceedings before the CIT(A) and furnish the required information and enable the CIT(A) to decide the appeals in accordance with law. Appeals of the Assessee are accordingly treated as allowed for statistical purposes.”
Smt. Prathibha R, Advocate appeared for the assessee.
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