2025 (5) TMI 964 - AT - Income Tax

Reopening of assessment u/s 147 - AO treated the return filed on 31/05/2021 as non-est - HELD THAT - In the present case in response to the notice dated 30/03/2021 issued u/s 148 of the Act the Assessee filed his return of income belatedly on 31/05/2021 which has been termed as belated return by the A.O. and ex-parte assessment order has been passed which has been upheld by the Ld. CIT(A). It is found that both the A.O. and the CIT(A) have lost their sight to the CBDT Circular No. 08/2021 dated 30/04/2021 wherein the CBDT has extended last date for filing the return of income in response to Section 148 of the Act till 31/05/2021. Thus both the authorities have committed error in holding the return filed by the Assessee dated 31/05/2021 in response to the notice u/s 148 as non-est. Therefore we set aside the orders of the Lower Authorities and remand the matter to the A.O. with a direction to treat the return filed by the Assessee dated 31/05/2021 as valid Return and pass the denovo assessment order in accordance with law. Appeal of the Assessee is partly allowed for statistical purpose.

Summary

The Appellate Tribunal (ITAT Delhi) heard the Assessee's appeal against the CIT(A)/NFAC order dated 28/02/2024 for AY 2013-14, where the Assessee had not filed the original return. The case was reopened u/s 147 of the Income Tax Act, 1961, and a notice u/s 148 was issued on 30/03/2021. The Assessee filed a return on 31/05/2021, which the AO treated as invalid and non-est, holding that the return was due by 30/04/2021. Consequently, the AO passed an ex-parte assessment order u/s 144 r.w.s 144B and 147, upheld by the CIT(A).The Assessee contended that the return filed on 31/05/2021 was within the extended time limit granted by CBDT Circular No. 08/2021 dated 30/04/2021, which extended the deadline for filing returns in response to notices u/s 148 till 31/05/2021 due to Covid-19. The Tribunal found that both the AO and CIT(A) erred in ignoring this Circular and wrongly held the return as invalid.The Tribunal set aside the lower authorities' orders and remanded the matter to the AO with directions to treat the 31/05/2021 return as valid and pass a fresh assessment order "in accordance with law." The appeal was partly allowed for statistical purposes.