18 January 2024
My Appeal against AO order was dismissed by CIT(A) in Dec22 and then my CA filed ITAT Form 36 online within 40 days but did not file physical appeal in Delhi bench. Now after 1 year i have received a section 271(1)(c) notice for penalty from IT dept and cannot find the appeal in ITAT website Is the appeal valid or barred due to time lapse? Can i file a appeal now and seek condonation of delay? How to reply to notice for penalty? Pls help
09 July 2024
Based on the information provided, here are the key points and steps you should consider:
### 1. Validity of Appeal:
- **Online Filing:** You mentioned that your CA filed Form 36 online within 40 days of the CIT(A)'s order dismissing your appeal. This suggests that you initiated the appeal process in time.
- **Physical Filing:** However, you did not mention filing the physical appeal in Delhi bench. Normally, filing Form 36 online is sufficient if it was done within the prescribed time limit. The physical filing may not always be mandatory, depending on the rules and practices of the ITAT.
- **Verification on ITAT Website:** Since you cannot find your appeal on the ITAT website after 1 year, it's crucial to verify the status of your appeal immediately. Contact ITAT helpline or check online to confirm whether your appeal has been registered and if any further actions are needed.
### 2. Time Lapse and Condonation of Delay:
- **Time Barred:** Appeals to ITAT must be filed within the stipulated time frame (usually 60 days from the date of receipt of CIT(A)'s order). If there was a delay beyond this period, the appeal could be considered time-barred.
- **Condonation of Delay:** If your appeal is found to be time-barred, you may still have the option to file for condonation of delay. This requires providing valid reasons for the delay along with an application explaining why the delay occurred.
### 3. Responding to Section 271(1)(c) Notice for Penalty:
- **Review the Notice:** Carefully review the notice for penalty under section 271(1)(c) of the Income Tax Act. Understand the specific grounds on which the penalty is proposed.
- **Gather Documents:** Collect all relevant documents related to your appeal filing, including proof of online Form 36 submission and any correspondence with ITAT or your CA regarding the appeal.
- **Consult with a Tax Professional:** It's highly advisable to consult with a tax professional or a chartered accountant who specializes in tax appeals and litigation. They can review your case comprehensively and provide guidance on how to proceed.
- **Draft a Response:** Prepare a well-documented response to the penalty notice, outlining the facts of your appeal filing, any reasons for delay (if applicable), and requesting an opportunity to present your case before any penalty is imposed.
### Important Considerations:
- **Timely Action:** Act swiftly to verify the status of your appeal and respond to the penalty notice within the stipulated time frame mentioned in the notice.
- **Professional Assistance:** Given the complexity of tax appeals and penalties, seeking professional advice is crucial to navigate the process effectively.
In summary, while you may have filed Form 36 online within the initial 40-day period, the current status of your appeal with ITAT needs to be verified immediately. If your appeal is found to be time-barred, explore the possibility of seeking condonation of delay. Additionally, respond to the penalty notice with a well-prepared explanation and supporting documents through professional assistance to safeguard your interests.
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