2023 (3) TMI 1103 - AT - Income Tax

Mode of filing the appeal - As disputed by the CIT(A) wherein the assessee has filed the appeal manually whereas the Rules required the appeal to be filed electronically - HELD THAT - There is no other defect which has been pointed out by the CIT(A). No doubt the Rules have been amended to provide for electronically filing the appeal, however before dismissing the appeal of the assessee, CIT(A) should have atleast allowed an opportunity to the assessee to remove the defect on account of manual filing of the appeal and to allow the assessee to file the appeal electronically which has apparently not happened in the instant case as no such opportunity was provided by the assessee to remove the defect. We find that under similar circumstances, in case of Mr. Umesh A Mishra Vs. ITO 2019 (3) TMI 1113 - ITAT MUMBAI has granted liberty to the assessee to file its appeal electronically before the CIT(A) holding that the liberal approach is required to be taken to advance justice as the procedure are handmade to advance justice. The assessee is hereby allowed to file its appeal electronically before the ld CIT(A) within four weeks of this order and the ld. CIT(A) is hereby directed to admit the appeal so filed electronically by the assesseee and adjudicate the issue raised by the assessee in its appeal on merits in accordance with law after providing reasonable opportunity to the assessee.

Summary

Issues involved:
The appeal filed by the assessee against the order of the Ld. CIT(A)- 43, New Delhi pertaining to A.Y. 2011-12 raises the following grounds of appeal:
1. Defects in the order of the Commissioner of Income Tax, (Appeals) both in Law and Facts of the case.
2. Additions of cash deposits as unexplained expenditure u/s 68 of the Income Tax Act.
3. Raising demand of tax against additions made u/s 68 of The Income Tax Act, 1961.
4. Charging interest under section 234A, 234B, and 234C of The Income Tax Act, 1961.
5. Initiating penalty proceedings u/s 271(1)(c) of the Income Tax Act, 1961.
6. Any other ground to be taken up at the time of hearing.

Summary of Judgment:

Issue 1: Manual vs Electronic Filing of Appeal
During the hearing, the Ld. AR argued that the appeal was dismissed in limine by the Ld. CIT(A) due to the manual filing of the appeal instead of electronically as required by Rule 12(3) of the Income Tax Rules. It was contended that the dismissal was solely based on a technical breach, and the assessee should be given an opportunity to rectify the filing method. The Ld. DR, on the other hand, supported the decision of the Ld. CIT(A) citing the existence of rules for electronic filing since 2016. The Tribunal noted that while the rules mandated electronic filing, the Ld. CIT(A) should have allowed the assessee a chance to correct the filing method before dismissing the appeal. Drawing from a similar case, the Tribunal emphasized the need for a liberal approach to advance justice and directed the assessee to file the appeal electronically within a specified timeframe.

Issue 2: Adjudication on Merits
The Tribunal observed that the Ld. CIT(A) had dismissed the appeal solely based on the method of filing without addressing the merits of the case. It was highlighted that procedures should serve to advance justice, and in this case, the dismissal without considering the substantive issues was not justified. Therefore, the Tribunal set aside the dismissal and directed the Ld. CIT(A) to admit the appeal filed electronically by the assessee and adjudicate the issues raised on their merits in accordance with the law after providing a reasonable opportunity for the assessee to present their case.

Conclusion:
In conclusion, the Tribunal allowed the appeal of the assessee for statistical purposes, directing them to file the appeal electronically within a specified timeframe. The Ld. CIT(A) was instructed to admit the electronically filed appeal and adjudicate the issues raised on their merits after providing a fair opportunity to the assessee.