2022 (3) TMI 1409 - AT - Income Tax

Tribunal partially allows appeal, remands issues for further consideration

The Tribunal partly allowed the appeal for statistical purposes, remanding the issues back to the CIT(A) for proper consideration after the assessee ... Condonation of delay filing appeal before CIT-A - Delayed contribution made by employees of Employees State Insurance Corporation and Provident Fund - CIT(A) has dismissed the appeal of the assessee on the ground that there was delay in filing the appeal before the CIT(A) as there was no affidavit filed by the assessee to explain the reason of the delay in filing the appeal - HELD THAT:- It is pertinent to note that there was delay in filing appeal before the CIT(A) and no affidavit for explaining the delay was filed by the assessee before the CIT(A). But the submissions which were submitted before the CIT(A) and quoted on para 4 of the order of the CIT(A), the assessee has given the explanation for the delay in filing the appeal. From the perusal of order it cannot be seen that the CIT(A) called for the affidavit of the assesse for explaining the delay. Since the assessee has not followed the proper procedure before the CIT(A), therefore, it will be appropriate to remand back the issue to the file of the CIT(A). We further direct the assessee to file the proper condonation of delay application along with the affidavit explaining the delay therein. Thereafter, the CIT(A) should decide the case on merit as well taking cognizance of the submissions of the assessee as per law. Appeal of the assessee is partly allowed for statistical purpose. Issues Involved:1. Disallowance of employer's and employee's contribution to State Insurance Corporation and Provident Fund.2. Disallowance of interest paid during the year but pertaining to previous assessment years.3. Dismissal of appeal against order under section 143(1)(a).4. Rejection of condonation application for delay in filing Form 35.Analysis:Issue 1: Disallowance of employer's and employee's contribution to State Insurance Corporation and Provident Fund:The appeal was filed against the order of the CIT(A) confirming the enhancement of returned income by disallowing the contributions made to the State Insurance Corporation and Provident Fund. The assessee argued that the contributions were made before the due date of filing the return of income under Section 139 of the Income Tax Act, 1961. The assessee contended that the contributions were deposited within the time available under Section 43B of the Act. The AR relied on various decisions supporting the assessee's claim, emphasizing that in case of debatable issues, the benefit should be in favor of the assessee. The Tribunal noted the delay in filing the appeal before the CIT(A) and directed the issue to be remanded back to the CIT(A) for proper consideration, requiring the assessee to file a condonation of delay application with an affidavit explaining the delay.Issue 2: Disallowance of interest paid pertaining to previous assessment years:The CIT(A) disallowed interest paid during the year but pertaining to assessment years 2013-14 and 2014-15. The Tribunal observed that the CIT(A) dismissed the appeal of the assessee due to a delay in filing the appeal without the submission of an affidavit explaining the delay. The Tribunal directed the issue to be remanded back to the CIT(A) for a decision on merit after the assessee files a proper condonation of delay application with an affidavit.Issue 3: Dismissal of appeal against order under section 143(1)(a):The assessee's appeal against the order under section 143(1)(a) was dismissed by the CIT(A) due to a delay in filing the appeal without proper explanation. The Tribunal remanded the issue back to the CIT(A) for a fresh decision after the assessee files a condonation of delay application with an affidavit.Issue 4: Rejection of condonation application for delay in filing Form 35:The CIT(A) rejected the condonation application filed for delay in filing Form 35 without considering the explanation offered by the appellant. The Tribunal directed the CIT(A) to reconsider the application along with the other issues mentioned above after the assessee files the necessary documents and affidavits.In conclusion, the Tribunal partly allowed the appeal for statistical purposes, remanding the issues back to the CIT(A) for proper consideration after the assessee fulfills the requirements set by the Tribunal.