2026 (7) TMI 1161

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....e Income Tax Act, 1961 ["the Act"] arising out of order dated 24.03.201 passed u/s 201(1)/201(1A) of the Act pertaining to Assessment Year 2013-14. 2. The appeal filed by the assessee is barred by 449 days. For the condonation of delay, an application alongwith affidavit of the Director is filed. In the said application, it is stated that due to financial distress, the company has closed its operation and does not have any employee since 2014. The order was passed by Ld.CIT(A) on 15.07.2024 however, due to the fact that the Directors are not aware of the proceedings and have not visited the Income Tax Portal where the appellate order was served. They came to know about the passing of the order only when they have received the appeal effe....

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....its right of hearing of appeal on merit ought not to be rejected. Considering the overall facts and circumstances of the case and in the larger interest of justice, delay in filling the appeal is hereby, condoned and appeal of the assessee is admitted for adjudication on merits. 5. Brief facts of the case are that the assessee is a Private Limited Company and assessment for the year under appeal was completed u/s 143(3) vide assessment order dated 29.03.2016 wherein disallowance was made u/s 40(1)(ia) of the Act on account of non-deduction of tax at source to the extent of expenses claimed at INR 95,01,186/-. Thereafter, the AO made a reference that TDS were deducted for necessary verification. Income Tax Officer, Ward-75(1), Delhi in te....

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....iry of the Financial Year under appeal, has dismissed the appeal of the assessee. Ld.AR submits that provision of section 201(1) should have been considered for the purpose of limitation according to which the period of 06 years from the end of the Financial Year in which payment is made or credit is to be given and credit of the computation of limitation for passing of the order passed by AO is barred by limitation and deserves to be quashed. 9. On the other hand, Ld. Sr. DR for the Revenue vehemently supported the orders of the lower authorities and submits once the amendment has been made and the AO has passed the order u/s 201(1) after such amendment therefore, the limits so extended are applicable to the facts of the case. He prayed....

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....t proviso to sub-section (3 of section 200, whichever is later]. 27. Substituted for "a person resident in Inda, at any time after the expiry of seven years" by the Finance No.2 Act, 2024, w.e.f. 1.4.2025." 11. As per the provision of section 201(1) of the Act, it could be passed within the period of 07 (seven) years from the end of the Financial Year in which payment made or credit is given. In the instant case, the Financial Year involved is 2012-13 and limitation period of 07 (seven) years expired on 31.03.2020 however, due to Covid-19 Pandemic as per TOLA, the limitation was extended and therefore, the order passed on 24.03.2021 is not barred by limitation. We thus, fund no error in the order of Ld.CIT(A) and accordingly, th....