2025 (1) TMI 376 - AT - Income Tax

Delay filling appeal before CIT(A)/NFAC - non admission of appeal on reasonable cause for the purpose of condoning the delay arising therein - HELD THAT - DR could hardly dispute the clinching fact that the CIT(A)/NFAC herein has even included the time period of Covid - 19 Pandemic outbreak on 15th March, 2020 till the date of filing of the appeal coming to 30th September, 2021 despite the fact that hon ble apex court s landmark decision in Re Cognizance for Extension of Limitation 2022 (1) TMI 385 - SC ORDER has already directed exclusion thereof. We deem it appropriate to clarify that this is indeed not the Revenue s case that the assessee has not explained the impugned delay up to 15th March, 2022 in her condonation petition. Larger interest of justice would be met in case the assessee s instant appeal is restored back to the AO for his afresh appropriate adjudication. Assessee s appeal is allowed for statistical purposes.

Summary

The Appellate Tribunal ITAT Delhi, comprising Shri Shamim Yahya and Shri Satbeer Singh Godara, addressed the assessee's appeal for the assessment year 2017-18 against the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (CIT(A)-NFAC), Delhi. The appeal arose from proceedings under section 143(3) of the Income-tax Act, 1961.

The CIT(A)/NFAC had refused to admit the assessee's appeal, filed on 30th September 2021, due to a failure to explain the delay in filing, which originated from an assessment dated 30th December 2019. The Tribunal noted that the CIT(A)/NFAC erroneously included the period of the Covid-19 pandemic (from 15th March 2020 to the appeal filing date) in the delay calculation, contrary to the Supreme Court's directive in Re: Cognizance for Extension of Limitation, which mandated the exclusion of this period.

The Tribunal determined that the interest of justice would be best served by remanding the case to the Assessing Officer for fresh adjudication. The assessee is required to present and substantiate her case within three effective opportunities, assuming responsibility for the proceedings. The appeal was allowed for statistical purposes, with the order pronounced on 18th December 2024.