2018 (4) TMI 1514 - AT - Income Tax

E-Filing of appeal - Non maintainability of appeal as filled manually as a paper appeal - Appeal filed by the Assessee manually and not electronically - Held that - In the present case, admittedly the assessment order has been passed before 01.03.2016, so the claim of the assessee that the said Circular as mandated appeals before the ld. Commissioner of Income Tax (Appeals) to be filed electronically is applicable to assessment orders passed after 01.03.2016, cannot be brushed aside summarily. In the above CBDT Circular, admittedly there is no discussion about the date of assessment order, with respect to which the said Circular is applicable. A construction that the said Circular is not applicable to assessment orders passed prior to 01.3.2016, cannot be said to be totally unsustainable The Hon ble Apex Court in the case of CIT v. Vegetable Products Ltd. 1973 (1) TMI 1 - SUPREME Court has expounded that if two constructions are possible, one in favour of the assessee should be applied. On the facts of the present case, and on the touch stone of the above said Hon ble Apex Court decision, it is of considered opinion that the assessee s plea that the appeal filed manually for assessment order passed prior to 01.03.2016, should be admitted by the ld. Commissioner of Income Tax (Appeals), is cogent. More so, when the ld. Commissioner of Income Tax (Appeals) in his earlier paragraph has accepted that the appeal is well within time. Accordingly direct the ld. Commissioner of Income Tax (Appeals) to admit the aforesaid appeal of the assessee.

Summary

Issues:
1. Rejection of appeal filed manually instead of electronically.
2. Interpretation of CBDT Circular regarding electronic filing of appeals.
3. Applicability of CBDT Circular to assessment orders passed before 01.03.2016.

Analysis:
1. The appeal was filed manually by the assessee against the order of the Commissioner of Income Tax (Appeals). The Commissioner rejected the appeal, stating that it should have been filed electronically as per the CBDT Circular. However, the Commissioner noted that the appeal was filed within time. The Tribunal noted that the Circular did not specify the applicability based on the date of the assessment order. The Tribunal, following the principle of construing in favor of the assessee, directed the Commissioner to admit the appeal and decide on the merits.

2. The CBDT Circular mandated electronic filing of appeals before the Commissioner of Income Tax (Appeals) from 01.03.2016. The Circular was subsequently extended to allow filing of e-appeals until 15.06.2016 due to technical issues and lack of knowledge among taxpayers. The Circular did not explicitly address the applicability based on the date of the assessment order. The Tribunal emphasized the need for clarity on the Circular's scope concerning assessment order dates.

3. The Tribunal considered the date of the assessment order in relation to the CBDT Circular requiring electronic filing of appeals. The Commissioner argued that since the assessment order was served after 01.03.2016, the appeal should have been filed electronically. However, the Tribunal, following the principle favoring the assessee, concluded that the Circular's applicability to assessment orders passed before 01.03.2016 was not definitively addressed. Therefore, the Tribunal directed the Commissioner to admit the appeal and provide a hearing for the assessee.