Athavan Arasan, Bangalore V. Income-Tax Officer, Ward-5(3)(5), Bangalore

ITA 1155/BANG/2022

AI Insights

The case involves an appeal by Sri Athavan Arasan against the order of the Commissioner of Income-tax (Appeals) NFAC, which dismissed his appeal as time-barred without adjudicating on the merits. The original assessment order was passed by the Assistant Commissioner of Income Tax, Central Processing Unit, Bengaluru, for the assessment year 2018-2019. The primary contention was the denial of foreign tax credit and procedural issues regarding the dismissal of the appeal due to alleged delay in filing. The Tribunal found that the dismissal was premature and not in accordance with the extended timelines provided by the Supreme Court due to the COVID-19 pandemic.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115249 (ITAT-BANGALORE)
• Duration Of Justice: 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 15-01-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 19-12-2022
• Other Referred Cases: Cognizance For Extension of Limitation (2021) 438 ITR 296 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “C”, BANGALORE Before Shri George George K, JM & Ms.Padmavathy S, AM ITA No.1155/Bang/2022 : Asst.Year 2018-2019 Sri Athavan Arasan 127 Mahaveer Willow Kengeri Satelite Town Bengaluru – 560 060. PAN : AHNPA0221F. v. The Commissioner of Income- tax (NFAC) (Appellant) (Respondent) Appellant by : Sri.Sarwan Kumar Respondent by : Smt.Priyadarshini Baseganni, Addl.CIT-DR Date of Hearing : 16.01.2023 Date of Pronouncement : 16.01.2023 O R D E R Per George George K, JM : This appeal at the instance of the assessee is directed against CIT(A)’s order dated 24.11.2022. The relevant assessment year is 2018-2019. 2. The grounds raised read as follows:- “1. General grounds: 1.1 The learned Assistant Commissioner of Income Tax, Central Processing Unit, Bengaluru (Assessing Officer) has erred in passing the assessment order in the manner passed by him and the learned Commissioner of Income tax, Appeals NFAC [CIT(A)) has erred in dismissing the appeal. The order passed by the CIT(A) is bad in law and liable to be quashed. Delay in filing of appeal before CIT (A) 1.2 The learned CIT(A) has erred in dismissing the appeal because of delay in filing of appeal on the ground that no reasonable cause of delay is submitted without appreciating the fact that the appeal has been admitted on July 15, 2021 ITA No.1155/Bang/2022. Sri Athavan Arasan. 2 stating that the appeal is verified and found to be in order. 1.3 The learned CIT(A) has erred in dismissing the appeal because of delay in filing of appeal on the ground that no reasonable cause of delay is submitted without granting an opportunity of being heard as none of notice issued has raised the issue of delay in filing of appeal. 1.4 The learned CIT(A) has erred in dismissing the appeal because of delay in filing of appeal without appreciating the fact that the appeal has been filed within the due date considering the extended period of limitation granted by honorable Supreme Court due to COVID. Foreign tax credit 1.5 The learned Assistant Commissioner of Income Tax, CPC has erred in passing the order under section 143 (1) in the manner passed by him. The intimation passed to the extent prejudicial to the appellant are bad in law and liable to be quashed. 1.6 The learned Assistant Commissioner of Income-tax, CPC has erred in not granting the benefit of foreign tax credit without providing any basis or reason for denial of foreign tax credit. 1.7 The learned Assistant Commissioner of Income Tax, CPC has erred in not granting the benefit of foreign tax credit in the intimation even though foreign income has been offered to tax and form 67 has been filed.” 3. At the very outset, we noticed that the appeal has been dismissed by the first appellate authority in limine on the ground that the appeal is time barred, without adjudicating the issue on merits. 4. We have heard rival submissions and perused the material on record. The order challenged before the first appellate authority is dated 20.03.2020 and the appeal has been filed before the first appellate authority on 01.10.2020. ITA No.1155/Bang/2022. Sri Athavan Arasan. 3 However, due to outbreak of Covid-19 pandemic , the Hon’ble Apex Court in the case of Cognizance For Extension of Limitation reported in (2021) 438 ITR 296 (SC), has extended the time limit for filing the appeal for the above said period. Hence, the appeal cannot be stated to be time barred before the first appellate authority. Therefore, we restore the matter to the first appellate authority to decide the issue on merits. It is ordered accordingly. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 16 th day of January, 2023. Sd/- (Padmavathy S) Sd/- (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER Bangalore; Dated : 16 th January, 2023. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A)-NFAC Delhi 4. The Pr.CIT, Bengaluru. 5. The DR, ITAT, Bengaluru. 6. Guard File. Asst.Registrar/ITAT, Bangalore