The Tax Publishers2021 TaxPub(DT) 0263 (Mad-HC)

INCOME TAX ACT, 1961

Section 260A

Where assessee was made known that the manual appeal filed in Form 35 would not be entertained only when the notice was issued by CIT(A) and that too, after a period of three years and further, when it was not disputed that there were several technical issues in e-filing of the appeals coupled with the fact that several assessees were not well-acquainted with the procedure for e-filing of the appeals, benefit can be given in favour of assessee especially when the right of appeal being a statutory right and valuable right and it should not be denied on technicalities.

Appeal (High Court) - Non-filling of appeal electronically - Appeal filed manually -

Assessee's assessment was concluded by assessment order under section 143(3) read with section 147. As against the said assessment order, assessee filed an appeal before CIT(A), i.e., well-within the period of limitation of 30 days computed from the date of the said assessment order. CIT(A) issued a notice to the assessee stating that in terms of rule 45 of the Income Tax Rules, 1962, it was mandatory and compulsory for filing the appeal only by way of e-filing with effect from 1-3-2016. Assessee filed an appeal petition in Form No. 35, instead of e-filing the appeal. Show cause notice was served on assessee and that assessee neither filed the e-appeal nor replied to the notice. Hence, CIT(A) concluded that sufficient cause had not been established by the assessee for not filing the e-appeal and accordingly, manual appeal filed by assessee was dismissed. However, Tribunal allowed the appeal of assessee. Held: Assessee was made known that manual appeal filed in Form 35 would not be entertained only when the notice was issued by CIT(A) and that too, after a period of three years. The contents of the show cause notice clearly showed that in so far as e-filing of the appeals was concerned, office of CIT(A) was not aware as to whether the assessee filed any appeal electronically or not. When it was not disputed that there were several technical issues in e-filing of appeals coupled with the fact that several assessees were not well acquainted with procedure for e-filing of the appeals, benefit can be given in favour of assessee, especially when the right of appeal being a statutory right and valuable right and it should not be denied on technicalities.

Followed:Sri Vasavi Gold & Bullion (P) Ltd. v. Dy. CIT [ITA No.326/CHNY/2019, dt. 4-12-2019].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10



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