2018 (7) TMI 831 - AT - Income Tax

E-fiiling of appeal - mandation of filling appeal electronically - delay in filing appeal - manuals appeals have been filed before Ld. first appellate authority within the prescribed time limit - Held that - The assessee is directed to e-file the aforesaid appeals within a period of 10 days from the date of receipt of this order consequent to which delay in e-filing shall stand condoned.Thereafter Ld. CIT(A) is directed to consider the appeals on merits as agitated by the assessee. See SHRI GURINDER SINGH DHILLON VERSUS INCOME TAX OFFICER WARD 15 (4) NEW DELHI. 2017 (4) TMI 1359 - ITAT DELHI

Summary

Issues:
Appeal dismissed on technical ground of manual filing instead of e-filing as required by rule.

Analysis:
The judgment dealt with the common grievance of the assessee regarding the dismissal of appeals by the first appellate authority due to manual filing instead of e-filing, as mandated by the rules. The appellate orders for different assessment years were similarly dismissed on this technical ground. The first appellate authority emphasized the requirement of electronic filing introduced on March 1, 2016, and deemed the manual appeals as not maintainable under section 249(1) of the Act. The assessee appealed to the ITAT, arguing for restoration based on a recent decision of the Tribunal and citing the absence of corresponding amendments in substantive law. The ITAT referred to previous case law emphasizing substantial justice over technical considerations, directing the assessee to e-file the appeals within 10 days for condonation of delay and consideration on merits by the CIT(A).

The ITAT highlighted that the introduction of e-filing of appeals was a procedural requirement under the IT Rules 1962 from March 1, 2016, without corresponding amendments in substantive law. Citing Supreme Court precedents, the ITAT emphasized that procedural rules should not deny justice to deserving litigants and that substantial justice should prevail over technical considerations. Referring to a specific case, the ITAT noted that the failure to e-file the appeal was a technicality, and substantial justice warranted setting aside the first appellate authority's orders. Noting a similar decision by the ITAT Delhi Bench, the ITAT directed the CIT(A) to consider the appeals on merits after e-filing within 10 days, with condonation of delay. The ITAT allowed the appeals, emphasizing the cause of justice over technicalities and directing the CIT(A) to proceed with the appeals on merits.

In conclusion, the ITAT allowed all appeals, setting aside the first appellate authority's orders based on technical grounds of manual filing instead of e-filing. The ITAT directed the assessee to e-file the appeals within 10 days for condonation of delay and consideration on merits by the CIT(A), in line with the principles of substantial justice prevailing over procedural technicalities.