Vaddadi Madhusudana Rao Vs ACIT (ITAT Visakhapatnam)
In the case of Vaddadi Madhusudana Rao v. ACIT (ITAT Visakhapatnam), the Income Tax Appellate Tribunal (ITAT) reviewed the appeal filed by the assessee concerning the assessment for the assessment year 2020-21. The assessee, who had retired under a Voluntary Retirement Scheme from MMTC Ltd., had received substantial terminal benefits. He filed his return of income, claiming exemptions on gratuity, but the Assessing Officer (AO) made several additions, including Rs.4,21,198 towards gratuity, after completing the scrutiny assessment. The total income was determined at Rs.1,60,50,427, and tax payable was computed at Rs.99,61,207.
The assessee appealed the AO’s order before the Commissioner of Income Tax (Appeals) [CIT(A)], but the appeal was dismissed in limine by the CIT(A) for being filed one day late. The CIT(A) rejected the delay without considering the reasons behind it, arguing that no condonation petition was submitted. Aggrieved by this decision, the assessee appealed to the ITAT. The ITAT, upon hearing the parties, pointed out that according to Section 9(1) of The General Clauses Act, 1897, the first day in a series of days is excluded, and therefore, a delay of one day does not constitute a delay in filing. The ITAT restored the matter to the CIT(A) for a fresh hearing, directing that the assessee be given an opportunity to present his case and that the appeal be decided on merits.
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