Tribunal allows delayed appeals, directs TDS verification under mercantile system. Upholds natural justice principles.

The Tribunal condoned the delay in filing appeals due to health issues, admitted the appeals for adjudication, and directed the Assessing Officer to verify the TDS credit claim based on the mercantile system of accounting. Emphasizing adherence to statutory provisions and assessment procedures, the Tribunal upheld natural justice principles by allowing both parties to present arguments. The decision highlighted the importance of verifying TDS credit eligibility to ensure compliance with the law and fair treatment of the appellant.

---

---

Issues Involved:
Appeals against orders of Commissioner of Income Tax (Appeals) for assessment years 2018-19 & 2019-20 - Delay in filing appeals - Condonation of delay - Credit for TDS - Mercantile system of accounting - Verification of TDS credit - Statutory provisions - Assessment procedures - Natural justice principles.

Detailed Analysis:

1. Delay in Filing Appeals:
The appeals were filed with a delay of 89 days due to unforeseen circumstances involving a key individual's health issues. The petitioner explained the reasons for the delay, attributing it to post-Covid complications and subsequent severe eye infection of the individual handling tax matters. The Tribunal, after hearing both parties, found the reasons provided by the petitioner to be reasonable and beyond their control. Consequently, the delay was condoned, and the appeals were admitted for adjudication.

2. Credit for TDS - Mercantile System of Accounting:
The appellant, a consulting and auditing firm, claimed credit for TDS for the assessment years 2018-19 and 2019-20 based on the mercantile system of accounting. The appellant contended that TDS credit should be allowed when income related to TDS has been offered for tax, as per statutory provisions. The appellant had filed relevant details of unclaimed TDS from previous years and asserted that the income related to TDS had been offered for tax in the respective assessment years. The Tribunal noted that the appellant had furnished necessary details in Form ITR-5. The Tribunal directed the Assessing Officer to verify the claim and allow TDS credit if the income related to TDS had indeed been offered for tax in the relevant assessment years.

3. Statutory Provisions and Assessment Procedures:
The Tribunal emphasized the importance of adhering to statutory provisions regarding the allowance of TDS credit when income pertaining to TDS has been offered for tax. The Tribunal highlighted the need for verification by the Assessing Officer to ensure compliance with the law and proper assessment procedures. The decision to set aside the issue to the AO for verification underscores the significance of following statutory requirements in determining TDS credit eligibility.

4. Natural Justice Principles:
Throughout the proceedings, the Tribunal ensured that principles of natural justice were upheld. Both parties were given an opportunity to present their arguments, and the Tribunal considered all relevant facts and submissions before reaching a decision. By allowing the appeals for statistical purposes, the Tribunal demonstrated a commitment to fair and just proceedings in line with natural justice principles.

In conclusion, the Tribunal's judgment addressed the issues of delay in filing appeals, credit for TDS based on the mercantile system of accounting, adherence to statutory provisions, assessment procedures, and principles of natural justice. The decision to direct the Assessing Officer to verify the TDS credit claim reflects a meticulous approach to ensuring compliance with the law and fair treatment of the appellant.

---