Ahura Welding Electrode Manufactures Limited Vs DCIT (ITAT Chennai)
The Chennai ITAT considered the assessee’s appeal for AY 2015-16 arising from the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), dated 24-08-2023 against the assessment framed under Section 143(3) of the Income-tax Act on 28-12-2017.
The Tribunal noted that the assessee’s first appeal before the CIT(A) had been filed with a delay of 23 days. The CIT(A) declined to condone the delay and dismissed the appeal without examining the issues on merits.
Before the Tribunal, the assessee submitted that it had filed a rectification application under Section 154 on 08-02-2017, which remained pending for disposal. According to the assessee, it was under the impression that the appeal on the remaining issues was to be filed after the rectification order. The Revenue sought dismissal of the appeal.
After considering the submissions, the Tribunal observed that the delay in filing the first appeal was only 23 days. It further noted that the pending rectification application under Section 154 had a bearing on the assessee’s grievance. The Tribunal held that, in these circumstances, the CIT(A) ought to have condoned the delay and adjudicated the appeal on merits.
Accordingly, the Tribunal restored the matter to the file of the CIT(A) for de novo adjudication on merits without raising the issue of delay. The appeal was allowed for statistical purposes.
