CBDT gives benefit of extended period of limitation for filing appeal before CIT(A) to comply with Supreme Court Order. Read Circular No. 10/2021
CBDT vide Circular No. 08/2021 dated 30th April, 2021 provided various relaxations till 31st May 2021 including extending time for filing the appeals before CIT (Appeals).
However, even before the issue of the said Circular, the Hon’ble Supreme Court vide order dated 27th April 2021 extended the limitation periods and directed that the period(s) of limitation, as prescribed under any General or Special Laws in respect of all judicial or quasi-judicial proceedings, whether condonable or not, shall stand extended till further orders.
Recently, in a case challenging the Circular No. 8/2021 for prescribing limitation period up to 31st May 2021 for filing Appeal before CIT(A), the Hon’ble Madhya Pradesh High Court has questioned the authority of the CBDT in issuing Circular No. 8/2021, extending the deadlines to 31st May 2021 in clear contradiction to the Hon’ble Supreme Court order extending limitation periods.
The Counsel of the CBDT has stated in the High Court that the CBDT will duly consider the order of the Hon’ble Supreme Court and will take an appropriate decision for extending the period of limitation for filing the appeal.
Now, in view of the said order of the Apex Court CBDT has issued Circular No. 10/2021 dated 25th May 2021 clarification the limitation time for filing of appeals before the CIT(Appeals) under the Income-tax Act,1961.
However, the interesting fact is that instead of withdrawing the illegal circular, the CBDT has taken shelter of the law laid down in the various decisions of the Hon’ble Supreme Court that when two views are possible, the one favourable to assessee has to be preferred..
The clarification states that .“if different relaxations are available to the taxpayers for a particular compliance, the taxpayer is entitled to the relaxation which is more beneficial to him. Thus, for the purpose of counting the period(s) of limitation for filing of appeals before the CIT(Appeals) under the Act, the taxpayer is entitled to a relaxation which is more beneficial to him and hence the said limitation stands extended till further orders as ordered by the Hon’ble Supreme Court….”
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