Madrasdated High Court · 2025

TCA No. 373 of 2023Vs1. The Income Tax Officer,TDS, CPC, Ghaziabad.Respondent(s)TCA No. 373 of 2023PRAYERTo against order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No. 1050/Chny/2022.TCA No. 379 of 2023PRAYERto against the order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No.1041/Chny/2022TCA No. 376 of 2023PRAYERTo against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1042/Chny/2022.TCA No. 382 of 2023PRAYERTo against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1046/Chny/2022.TCA No. 378 of 2023PRAYERTo against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1047/Chny/2022.TCA No. 377 of 2023PRAYERTo against order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA No.1049/Chny/2022.TCA No. 385 of 2023PRAYERTo the High Court against the Order of the Income Tax Appellate Tribunal, Chennai B Bench Dated 31.01.2023 in ITA No.1053/Chny/2022.CMP No. 15378 of 2023PRAYERTo grant stay of operation of the impunged order of the Tribunal in ITA https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023No.1038/Chny/2022 dated 31.01.2023 for the assessment Year 2013-14 and further proceedings pursuant to the impugned order pending disposal of the above TCA.CMP No. 15344 of 2023PRAYERto grant stay of operation of the impugned order of the Tribunal in ITA No.1052/Chny/2022 dt.31/01/2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals)CMP No. 15338 of 2023PRAYERto grant stay of operation of the impugned order of the Tribunal in ITA No.1040/Chny/2022 dt.31/01/2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals)CMP No. 15336 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA.No.1048/Chny/2022 dated 31.01.2023 for the assessment Year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above TCA.CMP No. 15311 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1050/Chny/2022 dt.31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).TCA No. 387 of 2023PRAYERTo against order of the Income Tax Appellate Tribunal, Chennai B Bench dt. 31.01.2023 in ITA No.1044/Chny/2022TCA No. 388 of 2023PRAYERTo against order of the Income Tax Appellate Tribunal, Chennai B Bench dt. 31.01.2023 in ITA No.1045/Chny/2022CMP No. 15306 of 2023 https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1036/Chny/2022 dt. 31.01.2023 for the assessment year 2013-14 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).TCA No. 390 of 2023PRAYERTo against order of the Income Tax Appellate Tribunal, Chennai B Bench Dated 31.01.2023 in ITA.No.1038/Chny/2022.TCA No. 374 of 2023PRAYERTo against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1036/Chny/2022.CMP No. 15316 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA.NO. 1037/chny/2022 dt. 31.01.2023 for the assessment year 2013-14 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).CMP No. 15315 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1042/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeal).CMP No. 15328 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No.1049/Chny/2022 dated 31.01.2023 for the assessment Year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above TCA.CMP No. 15325 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1043/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeal). https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023CMP No. 15362 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1053/Chny/2022 dt. 31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).CMP No. 15355 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No.1045/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above TCACMP No. 15347 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No.1044/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above TCACMP No. 15331 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1046/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).CMP No. 15319 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1047/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).TCA No. 383 of 2023PRAYERTo against order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA No.1048/Chny/2022.TCA No. 386 of 2023PRAYERto against the order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No.1052/Chny/2022CMP No. 15318 of 2023PRAYERto grant stay of operation of the impugned order of the Tribunal in ITA No.1041/Chny/2022 dt.31/01/2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023Case (Appeals)CMP No. 15365 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1039/Chny/2022 dt.31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).CMP No. 15323 of 2023PRAYERTo grant stay of operation of the impugned order of the Tribunal in ITA No. 1051/Chny/2022 dt.31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals).TCA No. 375 of 2023PRAYERTo against order of the Income Tax Appellate Tribunal, Chennai B Bench Dated 31.01.2023 in ITA.No. 1037/Chny/2022.TCA No. 389 of 2023PRAYERTo against the order of the Income Tax Appellate Tribunal, Chennai Bench B dated 31/01/2023 in ITA No. 1039/Chny/2022.TCA No. 384 of 2023PRAYERto against the order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No.1040/Chny/2022TCA No. 380 of 2023PRAYERTo against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1043/Chny/2022.TCA No. 381 of 2023PRAYERTo against the order of the Income Tax Appellate Tribunal, Chennai Bench B dated 31.01.2023 in ITA No. 1051/Chny /2022For Appellant(s):MR. R. DEVARAJ (IN ALL TCAs)For Respondent(s):MS.KRITI SHARMA FOR DR.S. RAMASWAMY FOR THE RESPONDENT (IN ALL TCAs). https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023COMMON JUDGMENT(Order of the Court was made by Dr.Anita Sumanth J.)The following substantial questions of law have been admitted for consideration:'a)Whether on the facts and in the circumstances of the case, the Tribunal was right by not condoning the delay, either it is inordinate delay or delay for few days, ignoring the settled laws.b)Whether on the facts and in the circumstances of the case, the Tribunal was right by not condoning the delay, taking into account Section 234 E of the Act is effective from 01/06/2015, whereas in the given case, the Assessment Year is 2013-14.c)Whether on the facts and in the circumstances of the case, the Tribunal was right by not considered that, no prejudice to the other side will occur by condoning the delay.' 2.This is a batch of 18 appeals challenging common order dated 31.01.2023 of the Income Tax Appellate Tribunal (Tribunal/ITAT) dismissing the appeals as being belated and rejecting the request for condonation of delay. The assessment years (AYs) relate to 2013-14 [TCA.Nos.374, 375, 389 & 390 of 2023], 2014-15 [TCA.Nos.376, 378, 379, 380, 382, 384, 387 & 388 of 2023] and 2015-16 [TCA.Nos.373, 377, 381, 383, 385 & 386 of 2023]. 3. The issue that arises for consideration on merits in all the appeals relates to the levy of interest under Section 234E of the Income Tax Act, 1961 (in short https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023'Act').4.Having heard Mr.R.Devaraj, learned counsel for the appellant/assessee and Dr.B.Ramaswamy, learned Senior Standing Counsel for the Income Tax Department, we find that the appeals may be grouped into two kinds. In nine (9) appeals there is no dispute with regard to the computation of delay, as the same has been rightly computed from the date of statement issued under Section 200A of the Act. Those appeals are tabulated below:Tabulation A Sl. No.Appeal No.FY/ QuarterDate of Passing OrderDate of Filing AppealDelay in DaysT.C.Appeal No./2023Date of Passing Order U/s 154Delay in Days1)NFAC/2013-14/ 100269792013-14/Q316/03/201417/11/20202408 Days37616/03/201424082)NFAC/2013-14/ 100118432013-14/Q316/03/201417/11/20202408 Days38216/03/201424083)NFAC/2013-14/ 100269582013-14/Q405/06/201417/11/20202327 Days37805/06/201423274)NFAC/2014-15/ 100270352014-15/Q129/07/201417/11/20202273 Days38329/07/201422735)NFAC/2014-15/ 100270342014-15/Q330/10/201517/11/20201815 Days37730/10/201518156)NFAC/2014-15/ 100270332014-15/Q408/04/201917/11/2020559 Days37308/04/20195597)NFAC/2014-15/ 100270302014-15/Q129/07/201417/11/20202273 Days38129/07/201422738)NFAC/2014-15/ 100270312014-15/Q305/05/201517/11/20201993 Days38605/05/201519939)NFAC/2014-15/ 100270322014-15/Q406/11/201517/11/20201808 Days38506/11/201518085.In the second group of nine (9) cases, the appellant has computed the delay at 260 days. However, according to the revenue, the delay is far higher, ranging between 1808 to 2410 days. Those appeals are tabulated below: https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023Tabulation BSl. No.Appeal No.FY/ QuarterDate of Passing OrderDate of Filing AppealDelay in DaysT.C.Appeal No./2023Date of Passing Order U/s 154Delay in Days1)NFAC/2013-14/ 100269382012-13/Q312/12/201317/11/20202502 Days38903/03/20202602)NFAC/2012-13/ 100269362012-13/Q212/12/201317/11/20202502 Days37403/03/20202603)NFAC/2012-13/ 100269372012-13/Q312/03/201317/11/20202502 Days37503/03/20202604)NFAC/2012-13/ 100269522012-13/Q212/03/201317/11/20202502 Days39003/03/20202605)NFAC/2013-14/ 100271692013-14/Q116/03/201419/11/20202410 Days38416/03/20142606)NFAC/2013-14/ 100269602013-14/Q216/03/201417/11/20202408 Days37903/03/20202607)NFAC/2014-15/ 100269592013-14/Q405/06/201417/11/20202327 Days38005/06/20142608)NFAC/2013-14/ 100269562013-14/Q116/03/201417/11/20202408 Days38703/03/20202609)NFAC/2013-14/ 100469572013-14/Q216/03/201417/11/20202408 Days38803/03/20202606.On a perusal of appeals in Tabulation B, we concur with the computation of delay per the assessee. In all these cases, after receipt of statement under Section 200A of the Act, the assessee has filed petitions under Section 154 seeking rectification of delay and subsequently statements under Section 200A read with Section 154 have been issued which had been challenged by way of appeal, albeit belatedly.7.Thus, in these circumstances, the delay would run only from date of service of the statement as rectified under Section 154 of the Act and not from date of original statement issued under Section 200A. Hence, the delay in all cases in Tabulation B per the assessee is accepted at 260 days. https://www.mhc.tn.gov.in/judis TCA No. 373 of 20238.The reason for the delay is that the issue on merits, relating to the levy of interest under Section 234E of the Act was pending before various judicial Fora such as different Benches of the ITAT and High Courts. Divergent views had been taken in regard to the validity of the levy as well as the effective date of levy. 9.Hence, the appellant was in a dilemma as to whether to file the statutory appeals or await a finality of the matter before the Supreme Court. Ultimately, and decided based on legal advice, it had chosen to file the statutory appeals belatedly. The Tribunal has rejected the explanation on the ground that it is not bonafide and unsubstantiated since no evidence had been placed by the appellant in regard to the legal advice sought.10.The stand of the appellant, regarding divergence of views on the levy of interest under Section 234E is not incorrect. Hence, we differ with the view of the Tribunal that the appellant has not acted bonafide. There is nothing to indicate that the appellant was not acting bonafide and the appellant does not, in any event, stand to gain by virtue of not challenging the orders adverse to it. Incidentally the periods for which interest under Section 234E has been levied are all prior to 01.06.2015 when that provision was inserted into the Statute.11.In this light of the matter, we condone the delay in filing appeals before the Tribunal, and restore the matters to the file of the Tribunal for hearing on merits, on 06.05.2025. No notice need be issued to the assessee separately in this https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023regard.12.Tax Case (Appeals) are allowed by way of remand. No costs. Connected miscellaneous petitions are closed.(ANITA SUMANTH J.)(C.KUMARAPPAN J.) 22-04-2025 (2/2) vsIndex:YesSpeaking orderNeutral Citation:YesToThe Income Tax Officer,TDS, CPC, Ghaziabad. https://www.mhc.tn.gov.in/judis TCA No. 373 of 2023DR.ANITA SUMANTH J.ANDC.KUMARAPPAN J.vsT.C.A.Nos.373, 381, 380, 379, 382, 389, 385, 384, 378, 377, 376, 375, 386, 383, 374, 390, 388 & 387 of 2023 andCMP.Nos.15378, 15365, 15323, 15318, 15319, 15331, 15328, 15325, 15362, 15355, 15347, 15316, 15315, 15306, 15311, 15338, 15336 & 15344 of 202322-04-2025(2/2)