The Lucknow bench of the Income Tax Appellate Tribunal (ITAT) set aside the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] due to an erroneous calculation of the delay in filing an appeal by the assessee.
The assessee has challenged the order passed by the CIT(A) for the assessment year 2019-20, where the CIT(A) had dismissed the appeal on the grounds of a 551-day delay.
The assessee, Co-operative Cane Development Union Limited, had filed its income tax return for the assessment year 2019-20, claiming a deduction of Rs. 3,27,99,144 under Section 80P of the Income Tax Act, 1961.
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The revenue disallowed the deduction, stating that the return was filed beyond the due date given under Section 139(1) of the Income Tax Act
Although the assessee appealed before the CIT(A), the latter dismissed the appeal, stating a 551-day delay in filing the appeal, and upheld the disallowance of the deduction.
The assessee appealed before the ITAT for relief.
The assessee contended that the actual delay was only 4 days, not 551 days and that the delay should be condoned in light of the COVID-19 pandemic and the Supreme Court’s orders extending limitation periods. The assessee also contended that the return was filed within the extended due date of October 31, 2019, as per a CBDT order dated 27-09-2019, which extended the deadline for filing returns due to difficulties faced by taxpayers during the pandemic.
The ITAT noted that the CIT(A) had incorrectly calculated the delay as 551 days, and the actual delay was only 4 days.
The bench referred to the Supreme Court’s order dated 10-1-22, which extended limitation periods due to the pandemic, and held that the delay should be reconsidered in light of this order.
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The ITAT set aside the CIT(A)’s order and directed the CIT(A) to pass a fresh order on the condonation of delay.
The tribunal highlighted that the return was filed within the extended due date, and therefore, the disallowance of the deduction under Section 80P was incorrect. The order was passed by Accountant Member Anadee Nath Misshra.
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