M/S ZIGMA GLOBAL ENVIRON SOLUTIONS P LTD., ERODE V. THE ACIT, CIRCLE-1, , ERODE

ITA 589/CHNY/2022

AI Insights

The case involves Zigma Global Environ Solutions P. Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals) regarding an assessment year 2016-17. The primary issue was the condonation of a delay in filing the return of income, which was filed 20 minutes late. The assessee argued that the delay was minimal and provided a chronology of events to the CBDT, seeking condonation. The Tribunal decided to remand the case back to the Assessing Officer, pending the decision from the CBDT on the condonation petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132704 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-01-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 13-07-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside
• Section: 20

Judgement Text

अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ीमहावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपीलसं./ITA No.: 589/CHNY/2022 िनधाᭅरण वषᭅ/Assessment Year: 2016-17 Zigma Global Environ Solutions P. Ltd., 201,202-161/1, Brindhavan Orchid, Indira Gandhi Street, Thindal (Kel), Selvam Nagar, Erode – 638 012. PAN: AAACZ 8255D vs. The ACIT, Circle 1, Erode. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Tarun, Advocate for Shri S.Sridhar, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri AR.V. Sreenivasan, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 19.01.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 17.02.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre in Appeal No.CIT(A), Coimbatore-3/10285/2019-20 dated 14.10.2021. The assessment was framed by the ACIT, Circle-1, 2 ITA No. 589/Chny/2022 Erode for the relevant assessment year 2016-17 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 08.12.2018. 2. At the outset, it is noticed that this appeal is barred by limitation by 213 days and assessee has filed condonation petition. The order of CIT(A) was received by assessee on 14.10.2021 and appeal before Tribunal was actually filed on 14.07.2022. It was contended by the ld.counsel that the Hon’ble Supreme Court in has granted grace period up to 29.05.2022 in Miscellaneous Application No.21 of 2022 vide order dated 10.01.2022 had excluded the limitation period for all statutory purposes from 15.03.2020 to 28.02.2022 with a further grace period of 90 days (29.05.2022). In term of the above, the ld.counsel stated that only delay remains is 46 days and this delay has occurred only due to the reasons that the appeal papers were entrusted to the Accounts Manager Shri S.S. Sivashankara Pandian, who failed to file the appeal within the grace period. When these facts were confronted to ld. Senior DR, he opposed condonation of delay but going through the reasons stated as well as the number of days of delay i.e., after excluding the grace period granted by the Hon’ble Supreme Court is 46 days only. 3 ITA No. 589/Chny/2022 Hence seeing the entirety of facts, we condone the delay and admit the appeal. 3. The only issue in this appeal is that the assessee has filed condonation petition for delay in filing the return of income u/s.119(2)(b) of the Act with the Central Board of Direct Taxes (CBDT) and assessee has filed proof before us, as there was delay in filing of return of income of only 20 minutes as the return of income was filed on 18.10.2016 at 12.20 am instead of time allowed by CBDT upto 17.10.2026. The assessee has given chronology of events in its petition filed before CBDT. The ld.counsel before us stated that the matter can be remitted back to the file of the AO and await the decision of CBDT and thereafter frame assessment whether deduction u/s.80IA of the Act is to be allowed or not. In case the CBDT condones the delay, the AO has to allow deduction u/s.80IA of the Act. 4. When these facts were confronted to ld. Senior DR, he fairly agreed that matter can be restored back to the file of the AO. 5. After hearing both the sides and going through the facts, we set aside the order of CIT(A) and that of the AO and remand the 4 ITA No. 589/Chny/2022 matter back to the file of the AO to await the decision of CBDT on the petition for condonation of delay filed by assessee. The assessee will take up the condonation petition with CBDT and Revenue will also dispose off as early as possible the petition filed by assessee. In term of the above, appeal of the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 17 th February, 2023 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 17 th February, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.