Tribunal allows Covid-19 delay in appeals, remands one, dismisses another as infructuous

The Tribunal condoned the delay in filing appeals due to the Covid-19 pandemic, remanding one appeal for fresh consideration while dismissing the subsequent appeal as infructuous. The assessee's challenges in providing necessary documents for approval under section 80G(5)(vi) of the I.T. Act, 1961 were acknowledged, leading to the remand decision. Despite the failure to produce required evidence of charitable activities, the Tribunal considered the pandemic's impact on the society's operations. The matter was sent back to the ld. CIT (Exemptions) for a reevaluation after providing the assessee with a reasonable opportunity to submit the necessary documents.

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Issues:
1. Delay in filing appeals due to Covid-19 pandemic.
2. Condonation of delay in filing appeals.
3. Approval under section 80G(5)(vi) of the I.T. Act, 1961.
4. Failure to produce necessary documents for approval.
5. Remand of the matter for fresh consideration.

Delay in Filing Appeals Due to Covid-19 Pandemic:
The appeals filed by the assessee against the order of the ld. CIT (Exemptions) were delayed by 288 days and 364 days respectively. The assessee attributed the delay to the challenges posed by the Covid-19 pandemic, which hindered the timely submission of documents. The reasons cited by the assessee included difficulties faced by the society in providing services to the elderly during the critical pandemic period.

Condonation of Delay in Filing Appeals:
Considering the impact of the pandemic and in the interest of natural justice, the Tribunal decided to condone the delay in filing the appeals. The delay of 288 days in one appeal was condoned, and the appeal was then decided on its merits.

Approval under Section 80G(5)(vi) of the I.T. Act, 1961:
The assessee had applied for approval under section 80G(5)(vi) of the I.T. Act, 1961. However, the ld. CIT (Exemptions) dismissed the application as the necessary documents supporting the charitable activities were not produced by the assessee within the stipulated timeframe. The Tribunal acknowledged the challenges faced by the assessee due to the pandemic, leading to the inability to submit the required documents.

Failure to Produce Necessary Documents for Approval:
The Tribunal noted that despite being asked to provide specific documents and certificates, the assessee failed to produce the required evidence of charitable activities. The Tribunal recognized the impact of the pandemic on the society's operations, leading to the inability to meet the submission deadlines.

Remand of the Matter for Fresh Consideration:
In light of the circumstances faced by the assessee society during the pandemic, the Tribunal deemed it appropriate to remand the matter back to the ld. CIT (Exemptions) for a fresh decision. The Tribunal directed the ld. CIT (Exemptions) to reevaluate the case after affording the assessee a reasonable opportunity to submit the necessary documents for approval.

Conclusion:
The Tribunal allowed the appeal in ITA No. 95/JP/2021 for statistical purposes, having remanded the matter back to the ld. CIT (Exemptions) for fresh consideration. The subsequent appeal in ITA No. 254/JP/2021 was dismissed as it became infructuous following the decision on the first appeal.

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