2020 (1) TMI 497 - AT - Income Tax

Tribunal allows delayed appeals, upholds challenge to demand under section 234E, sets aside CIT(A)'s orders for reconsideration.

The Tribunal condoned the delay in filing appeals, admitting them for hearing despite a 33-day delay attributed to administrative errors. The challenge to ... Condonation of delay - Demand raised u/s 200A - demand raised by way of fee u/s 234E for belated filing of Statement of TDS - CIT(A) in rejecting the appeals in limine as non-maintainable and defective - non cognizance of the default summary furnished by the assessee - CIT(A) has dismissed the appeals for the reason that the assessee did not enclose the copies of intimations issued u/s 200A - HELD THAT:- When the demand mentioned in the Default Summary is correct and further the demand raised u /s 234E is machine computed demand, in our view, no useful purpose will be served in insisting upon the copies of intimations, since the said intimations also would show the very same demand raised u/s 234E of the Act. Accordingly, we are of the view that the Ld CIT(A) should have proceeded to dispose of the appeals by taking cognizance of the default summary furnished by the assessee along with the return of income. Even though we have stated that the “Default summary” may be taken as the document depicting the demand, yet we have been informed by Ld D.R that the assessee could download the copies of intimations from the Income tax Site. Accordingly, we direct the assessee to download copies of intimations and if it is not able to download so, it may seek the assistance of the concerned authorities of Income tax department for downloading the intimations and after the copies of intimations are downloaded, they may be filed with Ld CIT(A). Accordingly we condone the delay that occurred between the date of intimation u/s 200A and the date of downloading of “Default Summary”. Accordingly, the assessee should have filed appeal from 30 days of date of downloading of “Default Summary”. The assessee may verify the same and if there is any delay, in the interest of natural justice, we allow an opportunity to explain the delay, if any, before Ld CIT(A), which shall be examined by Ld CIT(A) in accordance with law. CIT(A) has not adjudicated the appeals on merits. If there is delay in filing appeals after downloading of “Default summary”, the said delay also needs to be examined by Ld CIT(A). Accordingly, we are of the view that all the appeals under consideration are required to be set aside to the file of Ld CIT(A). appeals of the assessee are treated as allowed for statistical purposes. Issues:Appeal against rejection by Ld CIT(A) as non-maintainable and defective, delay in filing appeals, challenge to demand raised u/s 234E of the Act, denial of liability under the Act, necessity of enclosing copies of intimations, correctness of Default Summary data, condonation of delay, setting aside orders by Ld CIT(A).Detailed Analysis:1. Delay in Filing Appeals:The appeals filed by the assessee were delayed by 33 days, leading to a petition for condonation of the delay. The delay was attributed to the initial preparation of appeal papers by quarter instead of separately for each quarter, causing a delay in transmission and re-transmission of documents. The Tribunal, after considering the reasons provided by the assessee, condoned the delay and admitted the appeals for hearing.2. Challenge to Demand u/s 234E of the Act:The assessee contested the decision of Ld CIT(A) in rejecting the appeals challenging the demand raised under section 234E of the Act for belated filing of TDS statements. The appeals were based on the grounds that the assessee did not receive intimations of the demand initially and only became aware of it upon visiting the Income Tax Department site. The Ld CIT(A) dismissed the appeals as defective for not filing copies of intimations issued u/s 200A of the Act.3. Denial of Liability under the Act:The assessee argued that as it denied liability for the fee prescribed under section 234E for belated TDS filings, it had the right to appeal under section 246A of the Act. The Default Summary provided by the assessee, reflecting the demand raised under section 234E, was considered by the Tribunal as a valid document for appeal purposes.4. Necessity of Enclosing Copies of Intimations:The Ld CIT(A) dismissed the appeals as defective due to the absence of copies of intimations issued u/s 200A of the Act. However, the Tribunal noted that the Default Summary provided by the assessee contained the necessary information regarding the demand raised, making the insistence on copies of intimations unnecessary.5. Correctness of Default Summary Data:Upon inquiry, the Ld D.R confirmed that the data in the Default Summary was correct and unmodifiable by the assessee. The Tribunal acknowledged the accuracy of the Default Summary data, which included the outstanding demand raised under section 234E of the Act.6. Condonation of Delay and Setting Aside Orders:The Tribunal decided to condone the delay in filing appeals and directed the assessee to file appeals within 30 days of downloading the Default Summary. It further instructed the assessee to download copies of intimations from the Income Tax Site and submit them to the Ld CIT(A). As the Ld CIT(A) did not adjudicate the appeals on merits and if there was a delay in filing appeals after downloading the Default Summary, the Tribunal set aside all appeals for reconsideration by the Ld CIT(A).In conclusion, the Tribunal set aside the orders passed by Ld CIT(A) and restored all appeals to be reexamined in light of the detailed analysis and considerations provided.