Covid-related delay condonation and remand for fresh verification of documentary evidence in identical assessment-year disputes.

Delay in filing the appeal for assessment year 2018-19 was condoned because most of the delay fell within the Covid-19 period and the remaining delay was supported by a satisfactory affidavit explaining the cause. The dispute for both assessment years was remitted for fresh adjudication because the appellate authority had not decided the 2018-19 year on merits, the issues in both years were identical, and the disallowance required verification of the assessee's documentary evidence. The Assessing Officer was directed to decide the matter afresh after giving the assessee an opportunity of hearing.

---

---

Issues: (i) Whether the delay in filing the appeal for the assessment year 2018-19 warranted condonation after excluding the Covid-19 period and considering the remaining delay. (ii) Whether the matters for both assessment years should be remitted for fresh adjudication after verification of documentary evidence.

Issue (i): Whether the delay in filing the appeal for the assessment year 2018-19 warranted condonation after excluding the Covid-19 period and considering the remaining delay.

Analysis: The delay comprised a substantial period attributable to the Covid-19 situation and the balance delay was supported by an affidavit explaining the cause. The explanation was treated as sufficient for condonation.

Conclusion: The delay was condoned.

Issue (ii): Whether the matters for both assessment years should be remitted for fresh adjudication after verification of documentary evidence.

Analysis: The appellate authority had not adjudicated the assessment year 2018-19 on merits, the issues in both years were identical, and the disallowance required verification of the evidence produced by the assessee. A fresh decision after affording an opportunity of hearing was therefore considered necessary.

Conclusion: The matters were remitted to the Assessing Officer for decision on merits after verification of evidence and hearing the assessee.

Final Conclusion: The appeals were disposed of by setting aside the matter for fresh consideration, with the assessee obtaining a remand and the opportunity to substantiate its claim before the Assessing Officer.

Ratio Decidendi: Where delay is substantially attributable to the Covid-19 period and the remaining delay is satisfactorily explained, condonation is justified; where the dispute turns on documentary verification and the matter has not been decided on merits, remand for fresh adjudication after hearing the assessee is appropriate.

---