Tribunal favors assessee, cites pandemic impact & conflicting decisions, directs reassessment.

The Tribunal allowed the assessee's appeal, condoning the delay in filing the appeal due to the impact of the corona pandemic and the specific period exclusion directed by the Supreme Court. On the merits, the Tribunal favored the assessee, citing conflicting decisions in different High Courts and the principle of adopting the view favoring the assessee when two views are possible. The Tribunal directed the Assessing Officer to reconsider if a contrary view was upheld by the Supreme Court in pending appeals.

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Issues:
1. Delay in filing the appeal before the Tribunal.
2. Merits of the case regarding the disallowance made under section 36(1)(va) r.ws. 2(24)(x) of the Act.

Issue 1: Delay in filing the appeal before the Tribunal

The appeal was filed with a delay of 153 days, and the assessee sought condonation of delay citing inadvertent mistakes, the new system of e-assessment proceedings, and the impact of the corona pandemic. The Tribunal considered the directions of the Hon'ble Supreme Court of India in a specific case, which excluded the period from 15.3.2020 to 14.3.2021 for computing the period of limitation. As the assessee filed the appeal on 01.03.2021, falling within the period mentioned in the Supreme Court's order, the delay was condoned.

Issue 2: Merits of the case - Disallowance under section 36(1)(va) r.ws. 2(24)(x) of the Act

The assessee raised grounds of appeal against the order of CIT(A) dated 31.7.2020, contending that the disallowance of Rs. 5,63,420 under section 36(1)(va) r.ws. 2(24)(x) of the Act was contrary to law and facts. The assessee argued that the contributions for certain periods were paid with marginal delay or before the due dates. The Tribunal referred to a previous case and held that the issue was debatable as different High Courts had conflicting decisions. Citing the principle that if two views are possible on the same issue, the one favoring the assessee should be adopted, the Tribunal allowed the appeal. The Tribunal directed the Assessing Officer to reconsider the issue if a contrary view was upheld by the Supreme Court in pending appeals.

In conclusion, the Tribunal allowed the assessee's appeal for statistical purposes, considering the delay in filing the appeal and the merits of the case regarding the disallowance under section 36(1)(va) r.ws. 2(24)(x) of the Act. The decision was based on legal principles, previous judgments, and the specific circumstances of the case.

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