Appeal via Electronic Mode is Procedural Requirement, Non-Compliance cannot be Hindrance to Justice: ITAT [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) held that non-compliance of appeal via electronic mode cannot be a hindrance to justice as it was a procedural requirement.

Shri Hemendra Lilachand Shah, the assessee filed an appeal by a delay of 874 days before the ITAT. The assessee submitted that the order of the CIT(A) was handed over to the staff namely Shri Dinesh Desai who left the organization as the assessee was facing severe financial crises. The assessee could not repay the money borrowed from Visnagar Co-operative Bank for which the case is pending before the Metropolitan Court.

In the condonation petition, it was explained that the order of the CIT(A) was handed over to the staff namely Shri Dinesh Desai who left the organization as the assessee was facing severe financial crises.

The question that arose was whether the staff’s failure to supply the order of the CIT-A is reasonable and sufficient cause for condoning the delay. In the case of Sreenivas Charitable Trust v. Dy. CIT,it was held that the expression "sufficient cause" should be interpreted to advance substantial justice. Therefore, the advancement of substantial justice is the prime factor while considering the reasons for condoning the delay.

The Tribunal observed that the CIT(A) while dismissing the appeal of the assessee held that, as per the CBDT notification dated 01-03-2016 and Circular no. 20/2016 dated 26-05-2016 the assessee was required to file an appeal in electronic mode whereas the assessee filed appeal dated 28-04-2016 offline mood. 

A Coram comprising of Shri Waseem Ahmed, Accountant Member viewed that the requirement of filing an appeal before the CIT (A) in electronic form was new and the assessee being an individual filed an appeal before CIT(A) within the time limit but in a paper dated 18th April 2016 instead of filing online as required by the CBDT notification dated 1st March 2016.

While allowing the appeal, the ITAT held that “the filing of appeal in electronic mode is a procedural requirement and any failure to comply with the procedural requirement cannot be made hindrance in affording justice. The assessee who filed an appeal within the time limit in paper form in our considered cannot be deprived of justice merely for the reason to comply with the newly brought procedural requirement.”

To Read the full text of the Order CLICK HERE

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