2020 (12) TMI 655 - AT - Income Tax

Condonation of delay - Ex-parte order passed by the ld. CIT(A) on the ground that the assessee could not e-file the appeal - since the assessee could not e-file the appeal, the ld. CIT(A) dismissed the appeal filed by the assessee without adjudicating the issue on merits - HELD THAT - In this case, we find that the delay was on account of the venial breach and as the assessee had filed the manual appeal within the time and no show-cause notice to rectify the defect in filing the appeal was served on the assessee. Moreover, no notice under section 250(1) of the Act was issued to the assessee before concluding the appeal filed by the assessee. Thus, respectfully following the principles laid down in the case of State of Punjab v. Shyamalal Murari Others 1975 (10) TMI 105 - SUPREME COURT wherein, it was categorically purported that when technicalities and substantial justice are pitted against each other, the substantial justice deserves to be prevailed over technicalities, the delay in e-filing of the appeal before the ld. CIT(A) stands condoned and the issues in this appeal are restored to the file of the ld. CIT(A) for adjudication on merits in accordance with law by affording an opportunity of being heard to the assessee.

Summary

Issues:
Delay in filing appeal, Dismissal of appeal by CIT(A) without adjudication on merits, Non-compliance with e-filing requirement, Condonation of delay, Restoration of issues for adjudication.

Delay in filing appeal:
The appeal filed by the assessee was delayed by 24 days, and a petition for condonation of the delay was submitted by the assessee's counsel. The delay was condoned as the assessee was prevented by sufficient cause, and the appeal was admitted for adjudication.

Dismissal of appeal by CIT(A) without adjudication on merits:
The assessee challenged the ex-parte order passed by the CIT(A) on the grounds of inability to e-file the appeal. The CIT(A) dismissed the appeal without considering the merits, leading to the appeal before the Tribunal.

Non-compliance with e-filing requirement:
The CIT(A) dismissed the manual appeal filed by the assessee, stating that it was non-est as the appeal was not filed electronically, as mandated by the amendment to Rule 45 of the IT Rules.

Condonation of delay:
The Tribunal noted that the assessee filed a manual appeal within the stipulated time, and no defect notice was issued for e-filing. The delay in e-filing was condoned based on the principle that substantial justice should prevail over technicalities.

Restoration of issues for adjudication:
The Tribunal, following precedents, condoned the delay in e-filing the appeal and restored the issues to the CIT(A) for adjudication on merits in accordance with the law, emphasizing the need for affording the assessee an opportunity to be heard.

In summary, the Appellate Tribunal ITAT Chennai adjudicated on various issues arising from the delay in filing the appeal, the dismissal of the appeal by the CIT(A) without considering the merits, and the non-compliance with e-filing requirements. The Tribunal condoned the delay in filing the appeal, emphasizing the importance of substantial justice over technicalities. The issues were restored to the CIT(A) for adjudication on merits, ensuring the assessee's right to be heard.