ITAT Restores Appeal to CIT(A) for Fresh Consideration, Citing COVID-19 Impact on Limitation Periods [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal ( ITAT ) restored the appeal of the assessee to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh consideration, emphasizing the impact of the COVID-19 pandemic on limitation periods

Ivan Santosh Fernandes, Mumbai,the appellant-assessee,filed his original return of income on September 29, 2012, reporting a total income of ₹28,49,620. The return underwent processing under Section 143(3) of the Act, which resulted in an assessed income of ₹48,73,430. Subsequently, the assessment was reopened via a notice dated March 30, 2019, culminating in a re-assessment that increased the total income to ₹2,46,88,933.

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The assessee contested this reassessment before the CIT(A), but he dismissed the appeal as time-barred. The decision was based on the CIT(A)’s finding that the notice of demand was dated December 10, 2019, while the appellant claimed to have received it on December 7, 2021, which exceeded the allowable period for filing an appeal.

The CIT(A) noted that the assessee had filed a penalty appeal related to the same assessment year, indicating that he was aware of the ongoing tax disputes. Furthermore, the assessee did not provide any evidence to support his claim regarding the late receipt of the demand notice and failed to request a condonation of delay.

Upon review, the tribunal raised concerns regarding the CIT(A)’s approach, particularly the dismissal of the appeal without evaluating the circumstances surrounding the delay. The ITAT pointed out that the COVID-19 pandemic had led the Supreme Court to extend limitation periods, a factor that the CIT(A) had overlooked in making the decision.

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The two member bench comprising Raj Kumar Chauhan ( Judicial Member ) and Narendra Kumar Billaiya ( Accountant Member ) restored the matter to the CIT(A) for reconsideration, directing that the appeal be evaluated on its merits while ensuring the appellant was given a fair opportunity to present his case.

In conclusion the appeal was consequently allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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