ITAT Restores Appeal As Assessee Receives Order Intimation Belatedly, Accepts Envelope As Proof

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June held that an appeal cannot be dismissed as time barred if filed within the statutory period computed from the date of service of the order.

Judicial Member George Mathan and Accountant Member Rakesh Mishra set aside an Order of the Commissioner (Appeals) that had dismissed an appeal by Sudipta Traders Pvt. Ltd. without examining merits, and restored the matter for fresh adjudication. The Bench observed:

"the appeal was erroneously dismissed on account of delay while there was no delay and therefore, the same ought to have been decided on merits."

Sudipta Traders, the taxpayer, had challenged an addition of Rs. 2.80 crore under Section 68. It contended that although the assessment order was dated 21 March 2015, it was served only on 30 May 2015, and therefore the appeal filed on 8 June 2015 was within the prescribed limitation period.

Before the Tribunal, it produced a scanned copy of the speed post envelope showing the date of service. The Departmental Representative relied on the appellate order but did not dispute the date of receipt reflected in the postal record.

The Departmental Representative (Ld. DR) relied on the order of the Ld. CIT(A) and sought its affirmation, but failed to rebut the evidence produced by the taxpayer showing the date of receipt of the order.

Consequently, the Tribunal held that the appeal was filed within time and directed the Commissioner (Appeals) to decide the case on merits after granting due opportunity of hearing, including consideration under Rule 46A where applicable.

Accordingly, the ITAT partly allowed the appeal for statistical purposes.