Vineet Seth Vs DCIT (ITAT Bangalore)
Rectification First, Appeal Later—ITAT Condones 308-Day Covid Delay &; Revives Challenge to CPC Adjustments u/s 143(1)
The controversy
The assessee, Mr. Vineet Seth, was engaged in the business of providing security services. For AY 2018-19, he filed a return declaring total income of ₹42,57,010.
CPC processed the return u/s 143(1) and determined the total income at ₹78,56,890. The increase arose principally from a disallowance of ₹20,15,145 relating to PF/ESI contributions and an addition of ₹15,84,732 concerning income received on withdrawal of provident fund.
The assessee challenged the intimation before the Addl./JCIT(A). However, the appeal was filed with a delay of 308 days. The appellate authority refused to condone the delay, holding that the assessee had not demonstrated a genuine reason, and dismissed the appeal without examining the adjustments on merits.
The assessee therefore approached the Bangalore ITAT.
Rectification chosen on professional advice
The intimation dated 3 February 2020 was served by e-mail on the same date. The appeal ought to have been filed by 5 March 2020.
Soon after receiving the intimation, the assessee was advised to seek rectification u/s 154 instead of immediately filing an appeal. Acting upon that advice, a rectification application was filed on 30 August 2020.
