Maheshbhai Patel Vs PCIT Ahemedabad
Forum-Gujarat High Court
Date-23rd September,2021

Sub-Whether when an application for condonation of delay in filing the appeal is accepted by the Tribunal, the appeal would relate back to the due date and would be said to be pending on 31st January 2020 for the purpose of validity of the application under the Vivad Se Vishwas Act, 2020?

The assessee in this case having the appeal on 14.12.2020 against the due date of filing appeal being 18.12.2019 and also filed a petition for condonation of delay with Tribunal which was allowed by a speaking order on 23.02.2021. The assessee in the meantime filed an application under the VSV Act which came to be rejected on the basis of answer to Question No 59 of the Circulated dated 4/12/2020 issued by CBDT that the condonation for delay was not filed within the date of issuance of circular. The court however relying on the decision of Telangana High Court in the case of Boddu Ramesh (2021) 128 taxmann.com 13 (Telangana) and Delhi High court decision in the case of Shyam Sunder Sethi (unreported) held that condonation of delay whenever is accepted by the appellate authority, the same would relate back to the original date of filing of the appeal, as if the appeal is filed within the time period given under the statute. The court also considered Section 5 of the limitation Act to mean that once the application for condonation of delay in any such matter is preferred and the same is allowed, it would be construed as if there is no delay and the appeal is preferred well within time. Thus the application under the VSV Act was allowed.

This judgement will be helpful whenever the application under the Act has been rejected on grounds of limitation.

Ramesh Patodia
26-09-2021