The Income Tax Appellate Tribunal (ITAT), Bangalore Bench, in Hiringhut Solutions Pvt. Ltd. v. ITO, delivered an important ruling concerning the computation of the limitation period for filing an appeal before the Commissioner of Income Tax (Appeals). The Tribunal examined whether merely uploading an assessment order on the Income Tax Business Application (ITBA) portal amounts to valid service of the order upon the assessee.
The appeal arose after the National Faceless Appeal Centre (NFAC) dismissed the assessee’s appeal on the ground that it was filed with a delay of five days. The assessee contended that although the assessment order was dated 21 March 2025, it was actually served through email only on 26 March 2025. Accordingly, the appeal filed on 24 April 2025 was well within the statutory limitation period. The Revenue, however, argued that since the order had been uploaded on the ITBA portal on 21 March 2025, it should be deemed to have been served on the same date.
After examining Form No. 35 and the record, the Tribunal accepted the assessee’s contention. It held that mere uploading of an assessment order on the ITBA portal does not constitute valid service of the order. Referring to the decision of the Chhattisgarh High Court in Nitesh Kumar Goyal v. DCIT and the provisions of section 282 of the Income-tax Act, the Tribunal observed that valid service must be effected in the manner prescribed by law, including by post, courier, electronic communication, or other recognised modes. Simply making an order available on the portal cannot automatically be treated as service upon the taxpayer.
Since the assessment order was served through email on 26 March 2025, the Tribunal concluded that the appeal before the CIT(A)/NFAC had been filed within the prescribed limitation period. Consequently, the Tribunal held that the CIT(A)/NFAC erred in dismissing the appeal as time-barred without examining the issues on merits.
Accordingly, the ITAT set aside the order of the CIT(A)/NFAC and restored the matter for fresh adjudication on merits, directing that a reasonable opportunity of hearing be granted to the assessee. The appeal was partly allowed for statistical purposes.
Key Takeaways
This decision reiterates that:
- Mere uploading of an assessment order on the ITBA portal does not amount to valid service.
- Limitation for filing an appeal begins from the date of lawful service of the assessment order.
- Authorities must comply with the statutory requirements of service prescribed under section 282 of the Income-tax Act.
- Appeals should not be rejected on technical grounds where the assessee demonstrates that the order was actually served on a later date.
- The principles of natural justice require appellate authorities to adjudicate disputes on merits wherever the appeal is filed within the legally prescribed period.
