For the taxpayer ruling the Bangalore bench of the Income Tax Appellate Tribunal (ITAT) comprising Shri N. V. Vasudevan, Vice President, and Shri Chandra Poojari, accountant member sees that the fact that taxpayer losses to answer to income tax notices because of pandemic situation is a reason for the delay and hence rendered the income tax department to conduct the latest regime to prevent the violation of natural justice.
The taxpayer, M/s. Madanthyar Primary Agricultural Credit Co-operative Society was aggrieved by the ex-parte order of the Commissioner of Income Tax (Appeals) ensuring levy of late fee beneath section 234E of the Act since there was a delay in filing the mentioned TDS statement.
Seeing that there is no delay in appeal. The Tribunal mentioned that even the Hon’ble Supreme Court has been aware of the pandemic and prolonged the duration of limitation. The same is clear through the order of CIT (A) that the notices for query were given in the covid duration and the taxpayer said that the same shall not answer to the notices towards the same situation needs to be accepted as a reasonable cause. For the mentioned situations, we are of the view that the taxpayer should give the chance to be heard before the CIT(A).
The taxpayer is rendered to co-operate in the proceedings to CIT(A) and files the needed details and enables the CIT(A) to decide the appeals as per the income tax law. Appeals of the taxpayer are treated as permitted for the statistical use, Smt. Prathibha R, Advocate appeared for the taxpayer.
