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TMI Blog2023 (11) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the appeal as time barred without going into merits of the case. The Appellant Bank relies on various Judgements of Hon'ble Courts related to Condonation of Delay in filing appeals and requests Hon'ble ITAT to consider the appeal and set aside the order of Id. CIT(A). GROUND NO 2: Insertion of clause (c) to section 200a (1) of the IT Act specifically w.e.f,1.06.2015 The Id. CIT(A) has erred and not considered that TDS-CPC has been empowered to make claim and generate intimation u/s 200A for late fees (u/s 234E) for all the statements filed on or after 01 Jun-2015and not before. Hence, The Appellant pleads that intimations against all statement filed before 01-Jun-2015 should be quashed. GROUND NO, 3: Prospective effect w.e.f. 01-Jun-2015 of Section 200A(1(c) read with Section 234E The Id. CIT (A) has erred and not considered that since the appeal under consideration is in respect to Demand under Section 200A for computation and intimation for the payment of fee under Section 234E for TDS returns filed pertaining to period prior to 01.06.2015, the impugned notices for late filing levy shall be quashed considering the amendment in section 200A is effective only fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority. 3. The Ld. Sr. DR, on the other hand, drawing attention to the impugned order, submitted that there was inordinate delay for which no justifiable reason has been adduced by the assessee. The Ld. Sr. DR pleaded for dismissal of the appeals of the assessee. 4. The quantum of delay as tabulated by Ld. AR, in each of the appeal, is as under: - No. ITA No. AY Actual date of filing of original return Date of intimation u/s. 200A against which appeal was filed before CIT (Date of order of Assessing Officer) Date of filing of Form 35 CIT APPEAL No. of days of delay for CIT(A) 1 1009/Chny/2023 2013-14 04-12-2012 11-12-2013 23-01-2023 3300 2 1010/Chny/2023 2013-14 15-03-2013 11-12-2013 23-01-2023 3300 3 1011/Chny/2023 2013-14 15-03-2013 11-12-2013 23-01-2023 3300 4 1012/Chny/2023 2013-14 15-03-2013 11-12-2013 23-01-2023 3300 5 1013/Chny/2023 2014-15 11-04-2014 17-04-2017 24-01-2023 2078 6 1014/Chny/2023 2014-15 30-06-2014 03-07-2014 24-01-2023 3097 7 1015/Chny/2023 2014-15 11-04-2014 17-04-2017 24-01-2023 2078 8 1016/Chny/2023 2014-15 30-06-2014 03-07-2014 24-01-2023 3097 9 1017/Chny/2023 2015-16 12-03-2015 10-01- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay, it is noticed that there exist no sufficient good reason for condoning the delay and the cause shown is neither a satisfactory cause nor a sufficient cause. Therefore, notice u/s. 250 of the Act was issued on 14/07/2023 and the case was posted for hearing on 21/07/2023 to provide opportunity of being heard in view of natural justice wherein assessee was asked to furnish written submission on registered e-mail ID or on e- filing portal. In response thereto, reply was filed on 21/07/2023 furnishing the written submission along with the very same application for condonation of delay which is reproduced herein above. The appellant in its reply has relied upon various case laws in its claim and write up of which is reproduced here under: - "Dear Sir, in response to above hearing notice, Appellant (Tamil Nadu Grama Bank) would like to submit these submissions on the present appeal. We request Hon'ble CIT (Appeals) to consider these ground wise detailed submission as our final written submissions. Appellant would like to state that, Hon'ble Jurisdictional Chennai ITAT has already given decision on this exact matter in favour of assessee many of times in recent. Few of those cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was passed on 11/12/2013 and duly served on 14/12/2013. Accordingly, the appeal should have been filed on or before 14/01/2013, within 30 days from the service of the order. However, the appeal was filed on 24/01/2023, with a delay of 3297 days. The appellant had sufficient time to file the appeal before the COVID-19 pandemic emerged in March 2020. 4.6 Further, appellant has cited various judicial decisions from higher authorities to justify the delay in filing the appeal. These decisions, including judgments from the Hon'ble Apex Court, involve condoning delays due to COVID-19 or in the interest of justice, where no gross negligence or deliberate inaction was observed on the appellant's part. However, in the present case, the delay cannot be condoned due to the COVID-19 period, as the pandemic did not exist at the time of filing the appeal, within the statutory time frame. 4.7 It is pertinent to mention here that because of the Covid 19 pandemic, the Hon'ble Supreme Court relaxed the period of limitation vide its judgment dated 10.01.2022 [Suo Moto Writ (Civil)No.3 of 2020 along with M.A. No.21 of 2022 and M.A. No.665 of 2021]. The relevant portion of the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting it within that period." 5. It is pertinent to note that the delay may be condoned and the appeal may be admitted u/s. 249(3) only if the appellant could successfully demonstrate that it had sufficient cause for not presenting the appeal within the period of 30 days. 6. Further, appellant in its reply has again placed reliance upon various case laws including the case of Hon'ble Jurisdictional ITAT Chennai as under: - 1. THE CONGREGATION OF THE SISTERS OF THE CROSS OF CHAVANOD VS ACIT CPC DATED 26.10.2022 (ITA NO 807/CHNY/2022) 2. M/S SAM & CO V/S ACIT, CPC-TDS DATED 16.08.2022 (ITA NO. 595/CHNY/2021) 3. M/S LAMPMASTER WOLTERS INDIA PVT.LTD V/S ITO (TDS) DATED 29.07.2022 (ITA NO. 590 TO 592/CHNY/2022) 4. M/S DRX REXINE INC VIS ACIT CPC-TDS DATED 24.02.2022 (ITA NO. 351/CHNY/2021) Upon perusing the judgments of the aforementioned case laws rendered by the Hon'ble jurisdictional ITAT, it becomes evident that the sole grievance or the grounds raised in these appeals are pertaining to levy of fees u/s. 234E, rather than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tical and liberal manner, depending upon the facts and circumstances of the case, and the type of case. The words "sufficient cause in Section 5 of the Limitation Act should receive a liberal construction sc as 12 advance substantial justice, when the delay is not on account of any dilator tactics, want of bona fides, deliberate inaction or negligence on the part of the appellant." (emphasis supplied)". 9. The aforesaid view was reiterated in the case of Balwant Singh (Dead) v. Jagdish Singh, (2010) 8 sec 685, where in the Court held that: "25. We may state that even if the term "sufficient cause" has to receive liberal construction, it must squarely fall within the concept of reasonable time and proper conduct of the party concerned. The purpose of introducing liberal construction normally is to introduce the concept of "reasonableness" as it is understood in its general connotation. 26. The law of limitation is a substantive law and has definite consequences on the right and obligation of a party to arise. These principles should be adhered to and applied appropriately depending on the facts and circumstances of a given case. Once a valuable right has accrued in favour of o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a party has proceeded before filing an appeal. 28. In the matter of condonation of delay and laches, the well accepted position is also that the accrued right of the opposite party cannot be lightly dealt with." 13. From the above decisions it becomes clear that in the case of condonation of delay where the appeal was filed beyond the limitation of period, the courts are empowered to condone the delay, provided that the Appellant can prove his claim of inability to file appeal within the prescribed period. Litigant must be able to demonstrate that there was "sufficient cause" which obstructed his action to file Appeal beyond the prescribed time limit. 14. The law of limitation is found upon the maxims "Interest Reipublicae Ut Sit FinisLitium" that litigation must come to an end in the interest of society as a whole, and "vigilantibus non dormientibus Jura subveniunt" that the law assists those that are vigilant with their rights, and not those that sleep thereupon. The law of limitation in India identifies the need for limiting litigation by striking a balance between the interests of the state and the litigant. 15. In the present case, the appellant has not adduced any rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e will be a relevant factor so the case calls for a more cautious approach but in the latter case no such consideration may arise and such case deserves a liberal approach." 20. Further, ITAT, Chennai in the case of JCIT vs. Tractors & Farm Equipments Ltd. it was held as under: - "The delay cannot be condoned simply because the appellant's case is hard and calls for sympathy or merely out of benevolence to the party seeking relief. In granting the indulgence and condoning the delay it must be proved beyond the shadow of doubt that the appellant was diligent and was not guilty of negligence whatsoever. The sufficient cause within the contemplation of the limitation provision must be a cause which is beyond the control of the party invoking the aid of the provisions. The Hon'ble Supreme Court in the case of Ram/al v. Rewa Coalfields Ltd. AIR 1962 SC 361 has held that the cause for the delay in filing the appeal which by due care and attention could have been avoid cannot be a sufficient cause within the meaning of the limitation provision. Where no negligence, nor inaction, or want of bona tides can be imputed to the appellant a liberal construction of the provisions has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increase in compliance provisions and complexities of TDS provisions, branches used to face many difficulties in complying with it on timely manner. The TIN Facilitation Centre where TDS statement was to be filed was far away from the branches making it difficult to file return in time. Further, there were continuous changes in branch managers and concerned persons who were responsible for filing TDS returns. Due to amalgamation of various banks with assessee bank, it became difficult for head office of Bank to compile all previous data related to TDS returns which led to delay in filing the appeals. Lastly, due to unavailability of qualified professionals in remote areas and also due to lack of knowledge of compliance requirement to Income Tax notices, the notices remain unintentionally unanswered by the Bank. The Ld. AR further submitted that no appeals were preferred against original intimation orders since there was lack of clarity on the issue of levy of late fees u/s 234E. The assessee was informed by its consultants that the levy of late fee u/s 234E was already being challenged in the judicial forums and Bank decided to wait for the outcome of the judicial proceedings. Once ..... X X X X Extracts X X X X X X X X Extracts X X X X
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