In a recent ruling, the Cuttak bench of the Incomed Tax Appeallate Tribunal ( ITAT ) ruled in favour of the assessee and held that there was no delay in filing an appeal before the Commissioner of Income Tax ( Appeals ). It was held that the appeal was filed before the CIT ( A ) within the valid timeframe under the COVID-19 limitation extension.
In a recent judgment, the Income Tax Appellate Tribunal ( ITAT ) Cuttack Bench ruled in favor of Pradyumna Kumar Nanda, who had appealed against an order by the Commissioner of Income Tax (Appeals), NFAC, Delhi.
The CIT(A) had dismissed the assessee’s appeal on grounds that it was filed late by 106 days, beyond the prescribed 30-day limit after the issuance of the assessment order on 17-09-2021. Nanda’s appeal, filed on February 9, 2022, would ordinarily have been considered delayed, as it was expected to be submitted by October 25, 2021.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The counsel on behalf of the assessee argued that the delay was justifiable due extension of limitations during the COVID-19 pandemic. The counsel, by relying on the Supreme Court’s Suo Moto Writ Petition (C) No. 3/2020, submitted that the Supreme Court had extended the limitation period for judicial and quasi-judicial proceedings until February 28, 2022. Thus, the counsel submitted that the assessee’s appeal fell within this extended period and should not be dismissed on the basis of delay.
The ITAT, comprising George Mathan ( Judicial Member ) and Manish Agarwal ( Accountant Member ), held that the appeal was filed before the CIT ( A ) within the valid timeframe under the COVID-19 limitation extension. Thus, the ITAT set aside the CIT(A)’s decision, as there was no delay in the filing.
The bench noted that the assessee had not submitted all relevant evidence before the AO during the initial assessment. Therefore, the ITAT remanded the case back to the AO and directed the AO to give the assessee an adequate opportunity to present the assessee’s evidence.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The bench partially allowed the appeal for statistical purposes.
The assessee was represented by Mr. P.R. Mohanty and revenue by Mr. S.C. Mohanty.
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