M/S. CROTON TRADING PVT. LTD.,KOLKATA V. A.O., CPC, BENGLURU, BANGALORE

ITA 1941/KOL/2024

AI Insights

M/s. Croton Trading Pvt. Ltd. appealed against the order of the CIT(A) which had dismissed their earlier appeal due to it being barred by limitation. The Tribunal noted that although there was a significant delay in filing the appeal (1226 days), excluding the COVID period, the effective delay was 457 days. The assessee had previously filed a rectification application under section 154 of the Income-tax Act, 1961, which remained undecided by the Assessing Officer (AO). The Tribunal found that the delay in filing the appeal was not intentional but resulted from the inaction of the AO in deciding the rectification application. Consequently, the Tribunal set aside the CIT(A)'s order and restored the matter for a fresh decision on merits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35871 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2019-2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside; Period of limitation; Time period of passing order
• Section: 250; 154; 143(1)

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘C’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Rajesh Kumar, Accountant Member I.T.A. No.1941/Kol/2024 Assessment Year: 2019-20 M/s. Croton Trading Pvt. Ltd. .………. Appellant C/o, M/s. Salarpuria Jajodia & Co. 7, C. R. Avenue, 3rd Floor, Kolkata-700072. (PAN: AACCC2452K) vs. Assessing Officer, CPC, Bengaluru ……..… Respondent Appearances by: Shri S. Jhajharia, AR appeared on behalf of the Appellant Shri Subhro Das, Addl. CIT, Sr. DR appeared on behalf of the Respondent Date of concluding the hearing: November 26, 2024 Date of pronouncing the order: December 31, 2024 आदेश / ORDER Per Sanjay Garg, Judicial Member : The captioned appeal has been preferred by the assessee against the order dated 04.07.2024 of the Ld. Commissioner of Income Tax, (Appeal), Addl./JCIT(A), Chandigarh [hereinafter referred to as the “Ld. CIT(A)”] passed u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for AY 2019-20. 2. The appeal is barred by limitation period of 15 days. A separate application for condonation of delay has been filed. Considering the averments made in the application and the shortness of the delay period, the delay in filing the present appeal is hereby condoned. 3. At the outset, the Ld. Counsel for the assessee has brought our attention to the impugned order of the Ld. CIT(A) to submit that the Ld. CIT(A) has dismissed the appeal of the assessee being barred by limitation. The Ld. Counsel in this respect has explained that though there is a delay 2 ITA No. 1941/Kol/2024 M/s. Croton Trading Pvt. Ltd., AYs 2019-20 of 1226 days in filing the appeal before the Ld. CIT(A), however, excluding the Covid period, the effective delay in filing the appeal is of 457 days. 4. The Ld. Counsel has further explained that in this appeal, the assessee is aggrieved by the action of the AO in making certain adjustments while processing the return of the assessee u/s. 143(1) of the Act. He has further submitted that in fact, the assessee earlier had filed a rectification application u/s. 154 of the Act to the AO against the said adjustment made by him. However, the said rectification application of the assessee filed u/s. 154 of the Act has not been decided by the AO till date. He in this respect has submitted that since the AO did not decide the rectification application for a long time, the assessee perforce filed the appeal before the Ld. CIT(A) u/s. 250 of the Act. He, therefore, submitted that the delay caused in filing the appeal before the Ld. CIT(A) was not intentional but was due to inaction on the part of the AO in deciding the rectification application u/s. 154 of the Act. 5. Considering the above submissions of the Ld. Counsel for the assessee, the impugned order of the Ld. CIT(A) is set aside. The delay in filing the appeal before the Ld. CIT(A) is hereby condoned. The matter is restored to the file of the Ld. CIT(A) for deciding it afresh on merits irrespective of the delay in filing the appeal before him. Needless to say that the Ld. CIT(A) will pass a speaking order after affording proper opportunity of hearing to the assessee in accordance with law. Appeal of the assessee is treated as allowed for statistical purposes. 6. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order is pronounced in the open court on 31.12.2024. Sd/- [Rajesh Kumar] Sd/-[Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member JD Sr. P.S Dated: 31 .12.2024. 3 ITA No. 1941/Kol/2024 M/s. Croton Trading Pvt. Ltd., AYs 2019-20 Copy of the order forwarded to: 1. Appellant – M/s. Croton Trading Pvt. Ltd. 2. Respondent – AO, CPC, Bengaluru 3. CIT(A), Addl./JCIT(A)-2, Chandigarh 4. Pr. CIT 5. CIT(DR), True Copy By Order Assistant Registrar, ITAT, Kolkata "