Condonation of delay denied; direct AO to treat 11.09.2018 returns as rectification under s.154 read with s.139C, decide promptly

ITAT dismissed the claim for condonation of delay, finding no satisfactory proof of absence of negligence or diligence and confirmed the impugned order on that aspect. However, ITAT directed the ld. CIT(A) to instruct the AO to treat the assessee's returns dated 11.09.2018 as rectification petitions under s.154 read with s.139C, call for audited accounts or other material, decide by a speaking order after hearing the assessee in a time-bound manner. Appeals were allowed for statistical purposes.

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Issues Involved:
1. Maintainability of the appeals before the CIT(A) due to delay.
2. Correctness of the return form used by the assessee.
3. Consideration of returns as rectification petitions u/s 154.

Summary:

1. Maintainability of the Appeals:
The primary issue was whether the appeals filed by the assessee before the CIT(A), delayed by 3 years and 2 months (for AY 2014-15) and 2 years and 2 months (for AY 2015-16), were maintainable. The Tribunal held that the appeals were not maintainable due to gross negligence and lack of sufficient cause for the delay. The assessee's claim of receiving demand notices on 29.05.2019 was found to be false, as intimations were received in March 2016 and March 2017. The assessee's explanation of 'awaiting' assessment orders u/s 143(3) was deemed ludicrous and misconceived since no such assessments were made.

2. Correctness of the Return Form:
The assessee, a charitable trust, initially filed returns in Form ITR-7 instead of ITR-5, leading to demands due to the denial of application of income u/s 11(1)(a). The Tribunal noted that the returns filed subsequently in ITR-5 on 11.09.2018 were not processed and were considered non est. The Tribunal emphasized that filing returns in the wrong form should not convert a loss into income and that the returns in Form 7 were valid and proper.

3. Consideration of Returns as Rectification Petitions u/s 154:
The Tribunal directed the CIT(A) to treat the returns filed on 11.09.2018 as rectification petitions u/s 154. The AO was instructed to call for the assessee's audited final accounts and other relevant material, and to dispose of the applications per a speaking order in accordance with the law. The Tribunal underscored the principle that no tax can be levied except by the authority of law and that the assessee should get a fair deal.

Conclusion:
The appeals were allowed for statistical purposes, with directions to treat the returns as rectification petitions u/s 154. The stay petitions were dismissed as infructuous. The Tribunal emphasized the duty of the appellate authority to correct errors and issue appropriate directions, ensuring that only tax exigible under law is levied.

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