JOTUN INDIA PRIVATE LIMITED,MUMBAI V. ASSESSMENT UNIT, INCOME TAX DEPARTMENT AND JURISDICTIONAL AO, THE DCIT 2(2)(1), MUMBAI

ITA 6801/MUM/2024

AI Insights

Jotun India Private Limited filed appeals against the orders of the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment years 2008-09 and 2017-18, which were dismissed due to delays in filing. The assessee argued that the delays were not intentional and were during a severe COVID-19 period, referencing the Supreme Court's decision in Suo Moto Writ Petition (Civil) No. 3 of 2020, which had excluded certain periods from legal limitation calculations. The Tribunal found merit in the assessee's arguments, noting the unprecedented circumstances of the pandemic, and set aside the CIT(A)'s orders, remanding the cases for a decision on the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312534 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Assessment Year: 2017-2018
• Other Referred Cases: Suo Moto Writ Petition(Civil) No. 3 of 2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, HON’BLE JUDICIAL MEMBER SHRI GIRISH AGRAWAL, HON’BLE ACCOUNTANT MEMBER ITA No. 6801 & 6802/Mum/2024 (AY: 2017-18 & 2008-09) (Physical hearing) Jotun India Private Limited 601(II)/602, Fulcrum A Wing Next to Hyatt Regency, Sahar Road Andheri (East), Mumbai – 400099 Maharashtra PAN. AABCJ6665J Vs Assessment Unit, Income Tax Department and Jurisdictional AO The DCIT - 2(2)(1) AayakarBhavan, Mumbai- 400020 Maharashtra Appellant (RESPONDENT) Assessee Represented by : Sh. Ninad Patade, CA Department Represented by : Sh. Ajeya Kumar Ojha Sr DR Date of Conclusion of hearing : 01.05.2025 Date of Pronouncement of Order : 01.05.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. These two appeals by assessee are against separate orders of National Faceless Appeal Centre (NFAC) / CIT(A) both dated 07.11.2024 and for the A.Y. 2008-09 & A.Y. 2017-18 respectively. Both these appeals, were dismissed by ld. CIT(A) by taking view that there was delay in filing the appeals. Certain facts in both the appeals are common, so far as issue of limitation is concerned, therefore, with the consent of parties both the appeals are clubbed, heard together and are decided together to avoid the conflict in decision. For appreciation of facts, facts in A.Y. 2008-09 is treated as lead case. ITA No. 6801 & 6802/MUM/2024 Jotun India Private Limited 2 2. Rival submissions of both the parties have been heard and record perused. Learned Authorised Representative (Ld.AR) of the assessee submitted that assessment order was passed under section 143(3) r.w.s. 144C(3) and 254 of the Income Tax Act, 1961 (in short “Act) on 22.09.2021. Assessee filed appeal before ld.CIT(A) on 27.10.2021. Thus, there was a slight delay of seven days. The delay in filing the appeal is neither intentional nor deliberate. September, 2021 was severe Covid-19 period. The Ld. AR of the assessee submitted that time period of delay is covered from the decision of Hon’ble Supreme Court in Suo Moto Writ Petition(Civil) No. 3 of 2020, wherein the time period for taking the recourse of law was excluded from March, 2020 to till May, 2022. Thus, such delay was covered by the decision of Hon’ble Apex Court (supra). The ld. CIT(A) dismissed the appeal without discussion of the facts. The order of ld. CIT(A) may be set-aside with a direction to adjudicate all the grounds of appeal on merits. The ld. AR of the assessee further submits that there was a similar delay of about 95 days in filing appeal before ld CIT(A) for the A.Y. 2017-18, such delay is also covered by the decision of Hon’ble Apex Court in Suo Motu Writ Petition (Civil) No. 3 of 2020. Appeal for AY 2017-18 was also dismissed for the want of delay and without discussion on merit. Thus, order of ld.CIT(A) for AY 2017-18 may also be set-aside with a direction to adjudicate all the grounds of appeal on merits. 3. On the other hand, Learned Senior Departmental Representative (Sr. DR) for the revenue supported the order of ld. CIT(A). 4. We have considered the rival submissions of both the parties and perused the record carefully. We find that in both the matters there was a delay in filing ITA No. 6801 & 6802/MUM/2024 Jotun India Private Limited 3 the appeal before ld.CIT(A). We find that that relevant period during which assessment orders were passed and the assessee has filed the appeal, was a severe Covid-19 Pandemic, wherein Hon’ble Supreme Court has directed to condone the delay for taking recourse of law before various judicial or quasi judicial forum in Suo Motu Writ Petition (Civil) No. 3 of 2020. Therefore, the delay in filing in both the appeals before ld. CIT(A) is condoned, thereby the order of ld.CIT(A) in both the appeals are set-aside. Considering the fact that ld.CIT(A) has not adjudicated various grounds of appeal, therefore, both the appeals are restored back to the file of ld.CIT(A) for adjudication of grounds of appeal on merits. Needless to say that before passing the order, ld.CIT(A) shall provide reasonable and fair opportunity to the assessee. 5. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 01st May, 2025 at the time of hearing Sd/-/- GIRISH AGRAWAL ACCOUNTANT MEMBER Sd/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, DATED: 01.05.2025 Giridhar, Sr.PS Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai "