RAJKOT TRADING CORPORATION,RAJKOT V. THE I.T.O. WARD 3(1)(1), RAJKOT, RAJKOT

ITA 191/RJT/2024

AI Insights

The case involves the Rajkot Trading Corporation appealing against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, which had dismissed their appeal due to a delay in filing. The delay was attributed to the COVID-19 pandemic, during which the Supreme Court had extended the period of limitation for legal proceedings. The Tribunal found that the delay in filing the appeal before the CIT(A) was covered by the Supreme Court's judgment and thus should be condoned. Consequently, the Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer for de novo adjudication.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470483 (ITAT-RAJKOT)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-09-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 28-03-2024
• Other Referred Cases: Suo Motu Writ Petition (C) No.3 of 2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: D.M. RINDANI
• Keywords: Set aside; Period of limitation; Time period of passing order
• Section: 147; 144; 250; 12A

Judgement Text

"ITA No.191/Rjt/2024 (AY-13-14) Rajkot Trading Corporation 1 आयकर अपील\tय अ धकरण, राजकोट \u0011यायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBERAND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं/.ITA No.191/RJT/2024 \u0001नधा\u0005रणवष\u0005 /Assessment Year: (2013-14) Rajkot Trading Corporation 13, Kailashpati Society, Dhebar Road (South), Rajkot-360 002 बनाम Vs. Income Tax Exemption- Ward-2, Rajkot, IT Office, New Aaykar Bhavan, Vatika, Rajkot-400020 \u0005थायीलेखासं /. जीआइआरसं /. PAN/GIR No.AACFR 5966 L (अपीलाथ\u000f/Appellant) .. (\u0010\u0011यथ\u000f/Respondent) \u0001नधा\u0005\u0013रती क\u0016 ओर से/Assessee by : Shri D.M. Rindani, AR राज\u001bव क\u0016 ओर से/Revenue by : Shri Abhimanyu Singh Yadav, Sr-DR सुनवाई क\u0016 तार\u001eख/Date of Hearing : 24/09/2024 घोषणा क\u0016 तार\u001eख/Date of Pronouncement : 16/10/2024 आदेश/Order PerDr. Arjun Lal Saini, A.M Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2013-14, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi[in short ‘Ld.CIT(A)/NFAC’], under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), dated 02.02.2024, which in turn arises out of an assessment order passed by the Assessing Officer /National Faceless Assessment Centre, Delhi u/s 147 r.w.s 144 of the Act dated 23.09.2021. ITA No.191/Rjt/2024 (AY-13-14) Rajkot Trading Corporation 2 2. At the outset, Ld. Counsel for the assessee, begins by pointing out that that in assessee’ appeal under consideration, there was a delay in filing the appeal, for 79 days, before the ld. CIT(A), during the appellate proceedings, which was not condoned by the Ld.CIT(A), and appeal of the assessee, was dismissed by the ld CIT(A), in spite of the fact that assessee had explained the “sufficient cause” during the appellate proceedings.The Ld. Counsel for the assessee submitted that the delay in filing appeal before Ld.CIT(A) had been explained by citing the judgment of Hon’ble Supreme Court in Suo Motu Writ Petition (C) No.3 of 2020, dated 10.01.2022, wherein the Hon’ble Supreme Court had condoned the delay due to the outbreak of the COVID-19, pandemic, starting from 15.03.2020 and ends on 28.02.2022 and assessee’s case falls under this Covid-19 period, as assessment order was framed on 23.09.2021, therefore, the assessee supposed to file appeal before Ld.CIT(A) within one month from the date of assessment orderof Assessing Officer i.e. on 22.10.2021, however, the actual date of filing appeal, before Ld.CIT(A) was 10.01.2022, therefore, delay of 79 days had occurred, and this entire delay is attributable to the Covid-19 pandemic-period, hence, delay in filing appeal before Ld.CIT(A), should have been condoned by Ld. CIT(A), Suo-Motu, considering the judgement of Hon`ble Supreme Court(supra). Besides, learned CIT(A) did not adjudicate the issue on merit. Therefore, ld Counsel prayed the Bench that delay may be condoned and matter may be restored back to the file of the Assessing Officer for fresh adjudication, ITA No.191/Rjt/2024 (AY-13-14) Rajkot Trading Corporation 3 as the assessee did not submit the basic documents and evidences before the Assessing Officer, also. 3. On the other hand, Learned Senior Departmental Representative (Ld. Sr. DR) for the Revenue fairly agreed with the Ld. Counsel of the assessee that delay in filing appeal before Ld. CIT(A) is covered by the judgment of the Hon’ble Supreme Court in Suo -Motu Writ Petition (C) No.3 of 2020 dated 10.01.2022, wherein the Hon’ble Supreme Court has condoned the delay due to outbreak of the COVID-19 pandemic, starting 15.03.2020 to 28.02.2022. Therefore, in assessee’s case, the delay may be condoned and appeal may be restored back to the file of Assessing Officer for fresh adjudication. 4. We have heard both the parties and carefully gone through the materials available on record. We note that in Suo -Motu Writ Petition (C) No.3 of 2020, dated 10.01.2022, the Hon’ble Supreme Court had condoned the delay, due to outbreak of the COVID-19- pandemic, starting 15.03.2020 to 28.02.2022. The relevant para of the judgement of the Hon`ble court is reproduced below: “2. On 23.03.2020, this Court directed extension of the period of limitation in all proceedings before Courts/Tribunals including this Court w.e.f. 15.03.2020 till further orders. On 08.03.2021. the order dated 23.03.2020 was brought to an end. permitting the relaxation of period of limitation between 15.03.2020 and 14.03.2021, While doing so. It was made clear that the period of limitation would start from 15.03.2021. 3. Thereafter, due to a second surge in COVID-19 cases, the Supreme Court Advocates on Record Association (SCAORA) Intervened in the Suo Motu proceedings by filing Miscellaneous Application No. 665 of 2021 seeking ITA No.191/Rjt/2024 (AY-13-14) Rajkot Trading Corporation 4 restoration of the order dated 23.03.2020 relaxing limitation. The aforesaid Miscellaneous Application No.665 of 2021 was disposed of by this Court vide Order dated 23.09.2021. wherein this Court extended the period of limitation in all proceedings before the Courts/Tribunals including this Court w.e.f 15.03.2020 till 02.10.2021. 4. The present Miscellaneous Application has been filed by the Supreme Court Advocates-on-Record Association in the context of the spread of the new variant of the COVID-19 and the drastic surge in the number of COVID cases across the country. Considering the prevailing conditions, the applicants are seeking the following: i. allow the present application by restoring the order dated 23.03.2020 passed by this Hon'ble Court in Suo Motu Writ Petition (C) NO. 3 of 2020; and ii. allow the present application by restoring the order dated 27.04.2021 passed by this Hon'ble Court in M.A. no. 665 of 2021 in Suo Motu Writ Petition (C) No. 3 of 2020; and iii. pass such other order or orders as this Hon'ble Court may deem fit and proper. 5. Taking into consideration the arguments advanced by learned counsel and the impact of the surge of the virus on public health and adversities faced by litigants in the prevailing conditions, we deem it appropriate to dispose of the M.A. No. 21 of 2022 with the following directions: I. The order dated 23.03.2020 is restored and in continuation of the subsequent orders dated 08.03.2021, 27.04.2021 and 23.09.2021, it is directed that the period from 15.03.2020 till 28.02.2022 shall stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi- judicial proceedings. II. Consequently, the balance period of limitation remaining as on 03.10.2021. If any, shall become available with effect from 01.03.2022. III. In cases where the limitation would have expired during the period between 15.03.2020 till 28.02.2022, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 01.03.2022. In the event the actual balance period of ITA No.191/Rjt/2024 (AY-13-14) Rajkot Trading Corporation 5 limitation remaining, with effect from 01.03.2022 is greater than 90 days, that longer period shall apply. IV. It is further clarified that the period from 15.03.2020 till 28.02.2022 shall also stand excluded in computing the periods prescribed under Sections 23 (4) and 29A of the Arbitration and Conciliation Act, 1996. Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings. 6. As prayed for by learned Senior Counsel, M.A. No. 29 of 2022 is dismissed as withdrawn.” 5. We note that as per the above Suo-Motu Writ Petition (C) No.3 of 2020 dated 10.01.2022 (supra), the Hon’ble Supreme Court has condoned the delay in filing appeals before Income-tax Department, Hon’ble High Courts and other courts/forum for the period from 15.03.2020 to 28.02.2022 and delay in assessee’s appeal falls squarely and attributable to the period mentioned in the Suo-Motu Writ Petition(C) No.3 of 2020 dated 10.01.2022 (supra). Respectfully following the binding precedent, we condone the delay in filing appeal before Ld.CIT(A). 6. Since, we have condoned the delay in filing appeal before Ld.CIT(A), therefore, considering the facts the assessment was framed u/s 147 r.w.s. 144 r.w.s. 144B of the Act, and there was no compliance by the assessee before Ld.CIT(A), also. Therefore, we are of the view that the matter may be restored back to the file of Assessing Officer for de novo adjudication. Hence, we set aside the order of Ld.CIT(A) and restore the matter back to the file of Assessing Officer for fresh adjudication in ITA No.191/Rjt/2024 (AY-13-14) Rajkot Trading Corporation 6 accordance with law. Needless to direct, that before passing the order afresh, the Assessing Officer shall allow opportunity of hearing to the assessee. The assessee is also directed to furnish all the evidences at the earliest possible of time before Assessing Officer, as and when call for. In the result, entire lis of the assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 16/10/2024 Sd/- Sd/- (DINESH MOHAN SINHA) (DR.ARJUNLALSAINI) \u0016याियक सद\u0005य/JUDICIAL MEMBER लेखा सद\u0005य/ACCOUNTANT MEMBER राजकोट /Rajkot िदनांक/ Date: 16/10/2024 DKP Outsourcing Sr.P.S आदेश क\u001a \u001bितिलिप अ\u001fेिषत/ Copy of the order forwarded to : • अपीलाथ!/ The Appellant • \u001b\"यथ!/ The Respondent • आयकर आयु$/ CIT • आयकर आयु$(अपील)/ The CIT(A) • िवभागीय \u001bितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT • गाड-फाईल/ Guard File By order/आदेशसे, // True Copy // सहायकपंजीकार आयकरअपीलीयअिधकरण ,राजकोट "