Delay in filing appeal before Commissioner condoned on account of reasonable cause shown

General Lifescience Distributors Vs CIT (ITAT Mumbai)

ITAT Mumbai held that delay of 33 months in filing appeal before Commissioner condoned on account of reasonable cause and outbreak of Covid-19. However, an amount of Rs. 51,000 directed to be deposited in the Prime Minister’s National Relief Fund (PMNRF).

Facts- The present appeal is preferred by the assessee against the orders passed by the Commissioner of Income-tax u/s. 250 of the Income-tax Act, 1961, for the year 2012–13, whereby, the Commissioner upheld the assessment order passed u/s. 144 read with Section 147 as well as the penalty order passed u/s. 271(1)(c) of the Act.

Notably, assessment order dated 27/12/2019 u/s. 144 read with section 147 of the Act was passed, against which the Assessee though preferred its appeal by e-filing, mode on 21/12/2022, however, inspite of affording various opportunities of being heard by the Commissioner, neither appeared nor substantiated the delay of approximately 33 months in filing the appeal before the Commissioner. Therefore, the Commissioner in the constrained circumstances and in the absence of substantive material and / or reasonable cause, which the Assessee has failed to establish, dismissed the appeal of the Assessee in limine on the point of limitation. The Assessee being aggrieved, has preferred the present appeal.

Conclusion- Held that the peculiar facts and circumstances as the assessment order dated 27/12/2019 was passed as ex-parte U/s 144 read with section 147 of the Act and thereafter from March 2020 onwards Covid-19 period was started and the Hon’ble Apex Court excluded the period from March 15, 2020 to February 28, 2022 while computing the period of limitation for filing of any suit, appeal, application, or proceeding ; Ld. Commissioner decided the appeal filed by the Assessee in limine but not on merit; even otherwise no prejudice shall be caused to the Revenue Department if the case is directed to be decided on merit; substantial justice also demands that proper adjudication of the case is required to be done; hence, we are inclined to set aside the ex-parte order passed by the Ld. Commissioner and consequently, remanding the instant case to the file of the Ld. Commissioner or decision on merit, but subject to deposit of Rs.51,000/- in the Prime Minister’s National Relief Fund (PMNRF) within 30 days of receipt of this order. Suffice to say, the Ld. CIT(A) shall afford reasonable opportunity to the Assessee and in case of further default, the Assessee shall not be entitled for any leniency.

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