COVID-19 limitation extension made appellate delay condonable, restoring the first appeal for decision on merits.

Delay in filing the first appeal before the Commissioner of Income Tax (Appeals) was treated as condonable because the relevant limitation period fell within the COVID-19 window covered by the Supreme Court's suo motu extension of limitation. On that basis, the appeal was restored for adjudication on merits, and the underlying tax dispute was not decided at this stage.

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Issues: Whether the delay in filing the first appeal before the Commissioner of Income Tax (Appeals) ought to be condoned in view of the COVID-19 pandemic and the Supreme Court's extension of limitation, and whether the matter should be restored for decision on merits.

Analysis: The appeal before the first appellate authority was filed with substantial delay, but the delay was attributed to the pandemic period. The applicable limitation period was held to be covered by the Supreme Court's suo motu orders extending limitation for periods falling within the COVID-19 window. In those circumstances, the delay was treated as condonable and the grievance was directed to be examined on merits by the first appellate authority.

Conclusion: The delay was condoned and the impugned order was set aside with the matter restored to the Commissioner of Income Tax (Appeals) for adjudication on merits.

Final Conclusion: The assessee obtained restoration of the appeal before the first appellate authority, and the dispute was not decided on the underlying tax merits at this stage.

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