Western Maharashtra Development Corporation Ltd. Vs DCIT (ITAT Pune)
143(1) Additions on Dividend & PF: Appeal Restored After Delay Condoned- CIT(A) Refused to Condon Condemning Covid-Period Delay – ITAT Intervenes
Assessee, a Maharashtra Government company promoting industrial development, filed return for AY 2018-19 declaring income of ₹1,89,12,980. CPC processed the return u/s 143(1) making two adjustments—disallowance of ₹9,25,71,360 relating to dividend income and ₹55,09,140 for delayed PF payment. Rectification petition u/s 154 was rejected. Assessee then filed appeal before CIT(A) with a delay of 466 days. CIT(A) dismissed the appeal in limine holding that the delay was unexplained both before and after the Covid-19 period.
Before Tribunal, assessee filed affidavit explaining that the intimation was issued on 15.09.2019 followed by the nationwide Covid-19 disruption; further, from 01.11.2020 to 22.04.2025, the Managing Director held only additional charge, leading to administrative constraints & absence of a dedicated decision-making authority. Tribunal observed that most of the delay stands covered by the Supreme Court’s extension of limitation in Cognizance for Extension of Limitation In Re (2022) 441 ITR 722 (SC). Applying the principles of Collector v. Katiji & Inder Singh (2025 INSC 382), Tribunal held that there was “sufficient cause” preventing timely filing.
Since CIT(A) had not examined merits at all, ITAT restored the entire matter to CIT(A) for de novo adjudication with directions to pass a speaking order as per section 250(6), after giving proper opportunity. Assessee must update correct email/contact details & remain vigilant. Appeal allowed for statistical purposes.
