TMI Blog2021 (9) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... n grounds of appeal, it would mean that condonation of delay application has been allowed by Commissioner of Income Tax (Appeals). Therefore for respondent no.2 to say that there is no order condoning the delay and hence, the application/ declaration of petitioner under the VSV Act is rejected, is incorrect. Section 2(1)(a)(i) of the VSV Act provides for a person in whose case an appeal or a writ petition or special leave petition has been filed either by himself or by income tax authority or by both, before an appellate forum and such appeal or petition is pending as on the specified date is entitled to make a declaration under the Act. The specified date under Section 2(1)(a)(n) of the VSV Act is January 31, 2020. The time to file decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income tax for Assessment Year 2017-18 on October 30, 2017 declaring total income at loss of ₹ 23,92,61,385/-. Petitioner's case was selected for scrutiny and respondent no.1 passed an assessment order dated December 19, 2019 under Section 144 of the Income Tax Act, 1961 (the 'Act'). Aggrieved by this assessment order, petitioner filed an appeal before respondent no.3 under Section 246A of the Act on February 6, 2020. Mr.Singh stated that the time limit for filing the appeal under Section 246A of the Act expired on January 18, 2020 but the appeal was filed on February 6, 2020 along with an application for condonation of delay. The delay was of 19 days. Mr.Singh further stated that on January 24, 2020 itself, petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he specified date under Section 2(1)(a)(n) of the VSV Act is January 31, 2020. The time to file declaration/undertaking under VSV Act was January 31, 2021. Petitioner has admittedly made its declaration in Form 1 on January 21, 2021, i.e., within the prescribed period. 6. The Central Board of Direct Taxes issued a Circular dated December 4, 2020 in which question 59 and answer thereto reads as under :- Q.59. Whether the taxpayer in whose case the time limit for filing of appeal has expired before 31st Jan 2020 but an application for condonation of delay has been filed is eligible? Answer : If the time limit for filing appeal expired during the period from 1st April 2019 to 31st Jan, 2020 (both dates included in the peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion Bench in Shyam Sunder Sethi (supra). 8. In the case at hand, the time limit to file appeal expired on January 18, 2020, and the condonation of delay application was filed on February 6, 2020, before December 4, 2020, the date of the Circular, the appeal would be pending as required under the VSV Act. In any event, the Commissioner of Income Tax (Appeals) himself has addressed a letter dated January 20, 2021 asking the petitioner to furnish ground-wise submissions on the grounds of appeal if petitioner was not opting for VSV Scheme, 2020. This itself would mean the delay also has been condoned. 9. In our view, order of rejection dated February 26, 2021 is bad in law and is accordingly set aside. Respondent no.2 is directed to proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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