Court upholds right to appeal despite manual filing issue, directs compliance with e-filing within 3 weeks.

The Court upheld the petitioner's substantive right to appeal despite the procedural infirmity of manual filing. The impugned order dismissing the appeal as invalid due to manual filing was set aside. The Court directed the petitioner to comply with electronic filing requirements within three weeks, after which the appeal would be adjudicated on merits without limitation. The appellate authority was instructed to pass appropriate orders on the e-appeal filed by the petitioner within three weeks after filing and hearing the petitioner.

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Issues:
Challenge to order by Commissioner of Income Tax(Appeals) for assessment year 2013-14 - Validity of manual appeal filing in light of Rule 45 of Income Tax Rules, 1962 - Interpretation of Circular No.20/2016 dated 26.05.2016 regarding e-filing of appeals - Statutory right of appeal versus procedural requirements.

Analysis:
The petitioner challenged an order by the Commissioner of Income Tax(Appeals) for assessment year 2013-14, dated 28.12.2018. The appeal was filed manually on 28.04.2016, even though the petitioner was required to furnish the return of income electronically. Rule 45 of the Income Tax Rules, 1962 mandates electronic filing of appeals in Form No.35 for those who are required to file returns electronically. The petitioner's appeal was taken up for hearing on 10.10.2018 and subsequently on 11.12.2018, when a written submission was filed. The CIT(A) noted the appeal was filed manually and issued a notice on 11.12.2018, proposing to treat the appeal as non-est due to non-compliance with Rule 45.

The petitioner responded, citing Circular No.20/2016 dated 26.05.2016, which recognized issues with e-filing procedures and extended the time limit for e-appeals until 15th June 2016. The Circular acknowledged the operationalization of Electronic Verification Functionality for e-appeals from 12.05.2016 for individuals. The petitioner argued that the appeal filed manually on 02/05/2016 was valid under Rule 45 read with the Circular. The impugned order dated 28.12.2018 dismissed the appeal as invalid due to the manual filing.

The Court considered the technological upgradation of the Income Tax Department and the difficulties faced by both the Department and Assessees in transitioning to e-filing. Despite the procedural infirmity of manual filing, the Court upheld the petitioner's substantive right to appeal. The Court directed the petitioner to comply with Rule 45 within three weeks, after which the appeal would be adjudicated on merits without reference to limitation. The impugned order was set aside, instructing the appellate authority to pass appropriate orders on the e-appeal filed by the petitioner within three weeks after filing and hearing the petitioner.

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