By TIOL News Service

CHENNAI, APRIL 19, 2018: THE ISSUE at hand before the Bench was whether an appeal against an assessment order filed before the Aaykar Seva Kendra and later transferred to the CIT(A), would be barred by limitation. NO IS THE VERDICT.

Facts of the case

The assessee, a trust, was assessed for two AYs, upon which duty demands were raised. The assessee claimed that the assessee appealed to the CIT(A) for both AYs. It further stated that while a stay petition was pending in respect of one AY, the appeal for the other AY was yet to be taken on file. Hence the present writ.

On hearing the matter, the High Court held that,

++ the Standing Counsel for the Revenue reports that the appeal for the AY 2015-16 was not filed before the Commissioner of Income Tax(Appeals)-19, Chennai on 15.02.2017, but, before the Ayakar Savakendra (ASK), which has been assigned as ASK No. 011150217021010 and therefore, it is not an appeal in the strict sense and the Department had forwarded the papers to the Departmental representative as there was one set of papers filed. Subsequently, it appears, necessary instructions have been given to the officials and the entire set of papers, which were filed before the ASK, has now been forwarded to the Commissioner of Income Tax (Appeals), Coimbatore. A fresh problem has now arisen, i.e., if the appeal petition filed by the assessee is to be taken on file by the Commissioner of Income Tax (Appeals), Coimbatore, would be barred by limitation. In fact, when the assessee has filed the stay petition before the Commissioner of Income Tax (Appeals) on 14.03.2018, the same has been returned, since no appeal is pending in respect of the AY 2015-16.

++ in the light of the factual situation, this court is of the view that the assessee's right conferred under the provisions of the Act to file an appeal should not be foreclosed on technicalities. To avoid all technical objections being raised and to secure the interest of Revenue, this court is inclined to issue the appropriate directions. Thus, the writ petition is disposed of by directing the assessee to file a proper appeal petition before the Commissioner of Income Tax (Appeals) in respect of the assessment for the year 2015-16, within a period of ten days from the date of receipt of a copy of this order. The assessee is also entitled to file a stay petition in the said appeal.

(See 2018-TIOL-728-HC-MAD-IT)