Saquib Ahmed Vs PCIT (ITAT Indore)
ITAT Indore: Appeal Against Section 263 Order Filed After 3 Years – Dismissed on Limitation & Merits
Assessee, filed his return of income for AY 2016-17 declaring total income of Rs 18.76 lakh along with exempt income of Rs 90.65 lakh. The case was selected for scrutiny & AO, vide order u/s 143(3) dated 23.11.2018, accepted the returned income after necessary enquiry.
Subsequently, PCIT invoked his revisional jurisdiction u/s 263 & vide order dated 17.02.2021, set aside the assessment order, holding it to be erroneous & prejudicial to the interest of revenue, & directed fresh assessment.
Instead of filing an appeal, Assessee participated in the consequential reassessment proceedings & even filed an appeal before CIT(A) against that reassessment. Assessee, however, challenged the revisional order u/s 263 before the ITAT only on 29.04.2024, i.e., after an abnormal delay of nearly 3 years.
Assessee’s contentions for Delay Condonation
- Was unaware that the 263 order was appealable before ITAT
- Did not receive any hard copy of the order. It was claimed that the email sent by the Dept might have gone to spam/junk folder & got auto-deleted
- His tax consultant, had not advised him to file an appeal against 263 order
- Only in 2024, after consulting another CA, did he realise that an appeal lay against the revisional order
- Affidavits of both the assessee & the tax consultant were filed to support the plea
Revenue’s Stand
- 263 order was duly emailed to Assessee on 08.03.2021, with screenshots as evidence.
- Assessee had actively participated in the consequential assessment proceedings pursuant to the 263 order & had even filed an appeal before CIT(A). Hence, it was unbelievable that he was not aware of 263 order.
- Affidavits filed were self-serving & contradictory. While the consultant claimed he had not advised appeal, the fact remained that both knew an appeal lay against 263 order.
- Assessee was trying to “ride two boats”- taking a chance in the consequential proceedings & belatedly filing appeal before ITAT.
Tribunal’s Findings
