SAGAR DEVI LAL JOSHI,MUMBAI vs. ITO WARD 26(2)(1) MUMBAI, MUMBAI

The impugned order u/s 143(1) dated 16.03.2023 are bad in law,\nillegal, invalid, void-ab-initio on facts of the case, for want of\njurisdiction and also barred by limitation and various other reasons\nand hence the same may kindly be quashed.\n1.

The Ld. CIT(A) has grossly erred in law as well as on the facts of the\ncase in passing the Ex-parte order without providing the adequate\nand reasonable opportunity of being heard in gross breach of law,\nand also erred in law in passing the order without considering the\nmaterial and details available on record, hence the order may kindly\nbe quashed and entire addition liable to be deleted.\n2. Rs.1,30,44,505/-: The Ld. CIT(A) has grossly erred in law as well as\non the facts of the case in confirming the disallowance/ addition of\nRs.1,30,44,505/- u/s 43B made by the Ld. AO on wrong\ninterpretation, when the same were coming in the audited accounts.\nLd.AO and CIT(A) both have has also erred in ignoring the evidences\nand material available on record and not considering the same in\ntheir true perspective and sense. Hence, the addition/disallowance so\nmade by the AO and confirmed by the Ld.CIT(A) is being totally\ncontrary to the provisions of law and facts on the record and hence\nsame may kindly be deleted in full.\n3. Rs.7,079/-: The Ld. CIT(A) has also grossly erred in law as well as on\nthe facts of the case in confirming the action of the Ld. AO in giving\nthe credit of TDS on Rs.62,123/- only in place of Rs.69,202/- i.e. Ld.\nAO has not given the credit of TDS of Rs.7,079/-. He has also erred in\nignoring the evidences and material and not considering in their\nperspective and sense. Hence, the credit of TDS so not given by the\nLd. AO is being totally contrary to the provisions of law and facts on\nthe record and hence the same may kindly be directed to give the full\nTDS credit.\n4. The Ld. AO has grossly erred in law as well as on the facts of the case\nin charging interest u/s 234A, B and C. The appellant totally denies it\nliability of charging of any such interest. The interest, so charged,\nbeing contrary to the provisions of law and facts, may kindly be\ndeleted in full.\nPage 3\n \nΑ.Υ. 2022-23\nSagar Devi Lal Joshi\n3. Briefly stated facts of the case are that the return of income for\nthe relevant year was e-filed by the assessee declaring total income of Rs.\n51,24,130/-. The CPC processed the return u/s 143(1) of the Act\nassessing the income at Rs.1,81,68,640/-by making an addition of Rs.\n1,30,44,505/-. Further, credit of TDS amounting to Rs.7,079/- was also\ndisallowed by CPC.\n4. According to the appellate order, aggrieved by the said\naddition, the assessee filed an appeal on 14.08.2024 with a delay of\n487 days. A condonation request alongwith an affidavit was submitted\nclaiming that the there was delay of only 16 days from the date of\nphysical receipt of the impugned order though admitting receipt of the\nsame on his registered email. However, it was stated that due to inaction\non part of the staff/Consultant delay occurred. It is noticed that the\nassessee did not make any compliance during appeal proceedings also.\nAccordingly, he failed to explain the delay in filing of the appeal stated to\nbe of 487 days and also to defend the disallowances made by CPC which\nwere agitated by him in the appeal. Consequently, considering these\nfacts and materials on record, the ld.CIT(A) upheld the action of CPC\nand dismissed the appeal.\nPage 4\nITA No. 5654/Mum/2025\nΑ.Υ. 2022-23\nSagar Devi Lal Joshi\n5. Before us, the ld.AR has relied upon the affidavit in respect of\ndelay requesting for condonation of the same and remitting the issue to\nthe ld.CIT(A). The ld.DR however, objected to such proposition.\n6. On careful consideration of the submissions of the assessee and\non perusal of the affidavit filed before the appellate authority, we are of\nthe considered opinion that even though there is some element of\ncasualness involved in the delay in filing of the appeal before the\nappellate authority which however, does not appear to be intentional but\ndue to certain unavoidable reasons, mainly attributable to inaction on\npart of the dealing staff/Consultant. Rejection of the request for\ncondonation would cause genuine hardship to the assessee. In this\nconnection, reliance could be placed on the landmark decision of hon'ble\nSupreme Court which inter alia held in Collector, Land Acquisition\nv Mst. Katiji And Others- 167 ITR 471 (SC) that “ordinarily, a\nlitigant does not stand to benefit by lodging an appeal\nlate........Refusing to condone delay can result in a meritorious matter\nbeing thrown out at the very threshold and cause of justice being\ndefeated....Any appeal or any application, other than an application\nunder any of the provisions of Order XXI of the Code of Civil\nProcedure, 1908, may be admitted after the prescribed period if the\nappellant or the applicant satisfies the court that he had sufficient\nPage 5\nITA No. 5654/Mum/2025\nΑ.Υ. 2022-23\nSagar Devi Lal Joshi\ncause for not preferring the appeal or making the application within\nsuch period.... A litigant does not stand to benefit by resorting to delay.\nIn fact, he runs serious risk."Accordingly, in the interest of justice, we\ncondone the delay.\n6.1 We further observe that the ld.CIT(A) dismissed the appeal\nsolely on the ground of delay and on merits as well due to non\ncompliance of the assessee to the notices issued by him. He could not\nadjudicate the issues in correct perspective owing to lack of any response\nfrom the assessee. However, it is equally important that it is a\nfundamental duty of the assessee to diligently pursue the appeal and\ncomply with the notices and proceedings initiated by the Revenue\nauthorities. Moreover, the assessee's contention of inaction on part of\nthe Staff/CA cannot absolve him of his duty to follow up on its appeal.\nFailure of the assessee to take any initiative reflects negligence and\nindifference which is unacceptable, particularly when the appeal\ninvolves significant additions and disallowances. It is pertinent to note\nthat the principles of natural justice operate both ways, while the\nrevenue authorities are required to provide a reasonable opportunity of\nbeing heard, the taxpayer is equally obligated to co-operate with the\nauthorities and utilize the opportunities extended. Taxpayers are\nPage 6\nITA No. 5654/Mum/2025\nΑ.Υ. 2022-23\nSagar Devi Lal Joshi\nexpected to act responsibly, especially when significant sums and\ncomplex issues are under dispute.\n7. In light of the above, levy of cost would be fully justified. The\ncost serves as a necessary deterrent to ensure that taxpayers act with due\ndiligence in pursuing the proceedings and adhering to the timelines and\nprocesses laid down under the law. It also emphasizes the principle that\nwhile justice must be ensured, the system cannot cater to indolence or\nnegligence on the part of the assessee.\n7.1 In view of the above, following the principles of natural justice\nand fair play, we set aside the order of the ld.CIT(A) and restore the\nmatter to him. He is directed to make fresh adjudication of the grounds\nafter providing a reasonable opportunity of being heard to the assessee\nwho, in turn, would ensure due compliance.\n8. Considering assessee's lack of diligence in pursuing the appeal\nand failure to take timely measures respecting timeline laid down in the\nAct, we impose a cost of Rs.20,000/- on the assessee. The cost shall be\ndeposited to the credit of the Prime Minister's Relief Fund within 15\ndays of the receipt of this order and proof of payment shall be submitted\nbefore the ld.CIT(A).\nPage 7\nITA No. 5654/Mum/2025\nΑ.Υ. 2022-23\nSagar Devi Lal Joshi\n9. In the result, the appeal of the assessee is allowed for\nstatistical purposes, subject to the levy of costs as specified\nabove.\nOrder pronounced in the open court on 21/11/2025.\nSd/-\n[Justice (Retd. )C.V.BHADANG]\nPRESIDENT\nPlace: मुंबई/Mumbai\nदिनांक / Date 21.11.2025\nLubhna Shaikh / Steno\nSd/-\n[PRABHASH SHANKAR]\nACCOUNTANT MEMBER\nआदेश की प्रतिलिपि अग्रेषित/