Date of payment of self-assessment tax cannot be treated as date of filing appeal

Valley Iron and Steel Co. Ltd. Vs ACIT (ITAT Delhi)

Conclusion: Since AO wrongly took the date of deposit of self-assessment tax as date of filing of appeal whereas date of self-assessment tax payment had to be treated as the date of removal of defect in the appeal as originally filed, thus, once defect of remittance of self-assessment tax stood removed, CIT(A) was required to adjudicate the appeal on merits as the same was filed within prescribed period of 30 days from the receipt of order of AO.

Held: AO in view of non-payment of self-assessment tax, issued show cause notice to assessee as why the penalty u/s 140A(3) might not be levied. After repeated adjournment and non-compliance, assessee filed written submission. AO after considering written submission of assessee held that assessee failed to establish any reasonable cause for non-payment of admitted tax liability and accordingly levied penalty equivalent to 100% of the self-assessment tax amounting to Rs. 6,42,85,283/- in order dated 27/04/2012 u/s 140A(3). Against the said penalty, assessee filed appeal before CIT(A) on 07/05/2012, who dismissed the appeal vide order dated 22/01/2013 as unadmitted and non-est in view of provisions of section 249(4), which prescribed that no appeal be admitted by the CIT(A) if the tax due on the returned income had not been paid at the time of filing of the appeal. In second round of proceeding, CIT(A) treated date of payment of self-assessment tax, i.e., 28-3-2014 as the date of filing appeal before CIT(A) and thus, according to him, appeal was filed after a delay of substantial period which could not be condoned. It was held that CIT(A) failed to notice that the appeal was filed originally within the prescribed period of 30 days from the receipt of the order of AO. Once the defect of remittance of self-assessment tax stood removed , CIT(A) was required to adjudicate the appeal on merits as directed by the Tribunal. In the interest of justice, the order of CIT(A) was set aside and restored the appeal to CIT(A) for adjudicating on merit in accordance with law.

FULL TEXT OF THE ITAT JUDGEMENT