2020 (1) TMI 1410 - AT - Income Tax

E-Filing appeal - delay in filing the appeal - Non filling of appeal electronically within the period of limitation - prayer made by the assessee to reckoned the date of filing as on date on which the appeal was actually filed - According to the Ld. D.R., it is a mandatory requirement of law to e-file the appeal with effect from 01.03.2016 admittedly, the appeal was filed only on 01.07.2019, after the dismissal of appeal by CIT(Appeals) - HELD THAT - This Tribunal finds that the appeal was manually filed on 22.04.2016. The appeal was e-filed on 01.07.2019. In the meantime, the appeal filed manually on 22.04.2016 was dismissed. During the transition period from manual filing of appeal to e-filing,the assessee was confused. The appellate remedy provided under the scheme of the Income-tax Act cannot be brushed aside merely because there was a technical breach in the procedure of filing the appeal. The CBDT ought to have provided sufficient time for switch over to e-filing of appeal. When technicality and substantial justice are pitted against each other, the substantial justice has to be preferred. This being a proceeding under the Income-tax Act for computing the taxable income, this Tribunal is of the considered opinion that the appeal e-filed on 01.07.2019 has to be disposed of on merit. Accordingly, the delay in efiling the appeal is condoned and the impugned order of the CIT(Appeals) is set aside. The CIT(Appeals) shall consider the appeal e-filed on 01.07.2019 on merit and dispose the same in accordance with law, after giving a reasonable opportunity to the assessee.

Summary

Issues: Appeal against order of CIT(A) rejecting appeal due to delay in e-filing, interpretation of mandatory e-filing requirement from a specific date, consideration of technical breach in filing procedure, balancing technicality against substantial justice, condonation of delay in e-filing, direction for CIT(A) to consider appeal on merit.

The judgment pertains to an appeal against the order of the Commissioner of Income Tax (Appeals) -15, Chennai, concerning the assessment year 2013-14. The primary issue revolved around the mandatory requirement of e-filing appeals from a specified date. The assessee had initially filed the appeal manually on 22.04.2016 and subsequently e-filed it on 01.07.2019. The Commissioner found a delay in filing the appeal due to the mandatory e-filing requirement in effect from 01.03.2016. Consequently, the appeal was rejected without delving into its merit.

The Tribunal considered arguments from both the representative for the assessee and the Departmental Representative. The Departmental Representative asserted the mandatory nature of e-filing appeals from 01.03.2016 and highlighted the absence of an explanation from the assessee for the delayed e-filing post the initial dismissal. The Tribunal acknowledged the confusion during the transition period from manual to e-filing and emphasized the importance of not disregarding appellate remedies due to technical breaches. It stressed that in cases where technicality and substantial justice conflict, the latter must prevail. As the appeal pertained to computing taxable income under the Income-tax Act, the Tribunal deemed it necessary to consider the appeal e-filed on 01.07.2019 on its merits. Consequently, the delay in e-filing was condoned, the CIT(A) order was set aside, and the CIT(A) was directed to review the appeal on its merits, affording the assessee a reasonable opportunity.

In its final ruling, the Tribunal allowed the appeal filed by the assessee. The judgment was pronounced on 2nd January 2020 in Chennai, emphasizing the importance of balancing technical requirements with the principles of substantial justice in tax proceedings.