Order can’t be passed when an Application for Delay Condonation is Pending before CBDT: ITAT set aside Order of CIT(A) [Read Order]

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) held that an order cannot be passed when an application for delay condonation is pending before the Central Board of Direct Taxes (CBDT).

The assessee has filed the return of income for the assessment year 2018-19 admitting Nil income after claiming a deduction under section 80P of the Income Tax Act, 1961 of ₹.22,36,570/-.

The ADIT Centralised Processing Center, Bengaluru, while processing the return of income disallowed the claim of the assessee under section 80P of the Income Tax Act and passed intimation under section 143(1) of the Income Tax Act.

The counsel for the assessee has submitted that the assessee has filed a condonation petition before the CBDT under section 119(2) of the Income Tax Act to condone the delay in filing the return of income.

Further, it was submitted that despite having time to process the return of income under section 143(1) of the Income Tax Act, the CPC, Bengaluru hurriedly processed the same by denying the claim of deduction under section 80P of the Income Tax Act.

The assessee has filed an application for condonation of delay before the CBDT under section 119(2)(b) of the Income Tax Act, it was opined that once the delay condonation is pending before the CBDT, the Department ought to have waited for the decision of the CBDT, for the reason that, if the CBDT condone the delay, the claim of the assessee has to be considered in accordance with the law.

The two-bench member comprising of Durga Rao (Judicial member) and Manoj Kumar Aggarwal (Accountant member) set aside the order passed by the Commissioner of Income Tax (Appeal) and remitted the matter back to the file of the Commissioner of Income Tax (Appeal) to wait for the decision on the condonation petition filed by the assessee before the CBDT and thereafter pass an order in accordance with the law.

Thus, the appeals filed by the assessee are allowed for statistical purposes.

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