Case Law Details
SVP Industries Limited Vs DCIT (ITAT Delhi)
In a recent development, the Income Tax Appellate Tribunal (ITAT) in Delhi ruled in the case of SVP Industries Ltd. Vs Deputy Commissioner of Income Tax (DCIT). The verdict concluded that the period affected by the COVID-19 pandemic should not count towards the limitation period for filing appeals, thereby condoning the delay in filing.
The case revolved around the appeal by SVP Industries Ltd. against the Commissioner of Income Tax (Appeal)’s decision not to condone the delay in filing. The company argued that the Commissioner of Income Tax (Appeal) erred in not considering its submissions and dismissed the appeal summarily.
According to the ITAT Delhi, the Commissioner of Income Tax (Appeal) had indeed erred by not acknowledging the exceptional circumstances brought about by the COVID-19 pandemic. The ITAT pointed out that Section 3(1)(b) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, excludes the pandemic period while calculating the time limit for filing appeals before judicial and quasi-judicial authorities.
Given the unique challenges posed by the pandemic, ITAT Delhi emphasized that the inability to file a copy of the appealed order did not justify dismissing the appeal. Therefore, it restored the case to the Commissioner of Income Tax (Appeal) for fresh adjudication.
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