Period from 15-03-2020 till 14-03-2021 excluded for computing limitation period for any suit, appeal or proceedings- Andhra Pradesh HC

Brief Facts:

• The assessing authority issued a show cause notice dated 24.02.2020 to assessee in response to which the petitioner filed objections on 04.03.2020. Vide endorsement dated 07.03.2020, the assessing authority called upon the petitioner to appear for personal hearing on 12.03.2020.
• The petitioner appeared before the authority and sought time and the matter stood posted to 20.03.2020 and on which date, the petitioner requested to grant 4 working days’ time for the purpose of furnishing necessary information.
•   Subsequently, due to the onset of Covid-19 pandemic, the petitioner could not approach the assessing authority for the purpose of furnishing the aforesaid information and the authority passed order of assessment dated 31.03.2020.
• In the Writ Petition, the petitioner challenged the order of assessment passed by the CTO on 31.03.2020.
• The petitioner submitted that Hon’ble Apex Court having regard to the situation which arose due to Covid-19 pandemic, took up the issue suo motu vide Writ Petition (Civil) No. 3 of 2020 and issued the following directions:

(a) In computing the period of limitation for any suit, appeal, application or proceedings, the period from 15.03.2020 till 14-03-2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03.2020, if any, shall become available with effect from 15.03.2021.
(b) In cases where the limitation would have expired during the period between 15.03.2020 till 14.03.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 15.03.2021. In the event, the actual balance period of limitation remaining w.e.f. 15.03.2021 is greater than 90 days, then longer period shall apply.

High Court Ruling:

• It is very much evident from a reading of the above order of the Hon’ble Apex Court that the period from 15.03.2020 to 14.03.2021 is liable to be excluded from the period of limitation.
• Thus, having regard to the provisions of Section 31 of the AP VAT Act, 2005 and in view of the order of the Hon’ble Apex Court, this court deems it appropriate to relegate the petitioner to the alternative remedy of appeal to the Appellate Deputy Commissioner.
• For the aforesaid reasons, the Writ Petition is disposed of, leaving it open for the petitioner to avail the alternative remedy under section 31 of the AP VAT Act, 2005, within a period of 2 weeks from the date of receipt of this order. There shall be no coercive action against the petitioner herein for a period of 4 weeks.