Loading judgment…
Facts
The assessee filed an appeal challenging the CIT(A)'s order which dismissed the appeal as time-barred. The CIT(A) found no sufficient cause for condoning the delay. The delay was attributed to the honorary treasurer's severe health complications, a major surgery, and the subsequent transition challenges within the trust.
Held
The Tribunal held that substantial justice should be preferred over technicalities, especially when the delay is non-deliberate and caused by extraordinary circumstances. The Tribunal condoned the delay and restored the matter to the CIT(A) for deciding on merits.
Key Issues
Whether the delay in filing the appeal before the CIT(A) was to be condoned considering the extraordinary health circumstances of the assessee's representative and the trust's operational disruptions.
Sections Cited
250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI SANDEEP GOSAIN
Date of Hearing 26.08.2025 Date of Pronouncement 22.09.2025 ORDER Per: SHRI. SANDEEP GOSAIN, J.M.:
The present appeal has been filed by the assessee challenging the impugned order dt. 21.04.2025 passed under section 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment year 2018-19.
From the records I noticed that appeal of the 2. assessee was dismissed by Ld. CIT(A) as the same was beyond period of limitation and Ld. CIT(A) reached to the conclusion that assessee had no sufficient cause for seeking condonation of delay in filing the appeal. Whereas Ld. AR relied upon the contents of the application for seeking condonation of delay, which is reproduced herein below:
DEPONENT'S BACKGROUND AND AUTHORITY 1.1 I served as the honorary treasurer of Mahakali Ayyappa Seva Sangh ("the Trust") from 2017 until my resignation in September 2022, duly authorized by the Board of Trustees 1.2 During my tenure as the honorary Treasurer of the trust, I was vested with primary responsibility for.
Liaison with statutory auditors and tax consultants Management of financial processes and statutory compliance Coordination of income tax matters and related documentation Ensuring timely compliance with all regulatory requirements 1.3 1 was the designated point of contact for all tax-related matters and maintained exclusive coordination with M/s Suvarna and Kadtare, Chartered Accountants, who handled the Trust's tax affairs.
1.4 I am competent to make this affidavit having personal knowledge of the circumstances leading to the delay in filing the present appeal.
CHRONOLOGY OF HEALTH COMPLICATIONS AND THEIR IMPACT 2.1 Onset and Progression of Health Issues (2019-2020)
2.1.1 From 2019 onwards, I began experiencing severe health complications including cervical spondylosis and uterine fibroids, which progressively deteriorated and significantly impaired my functional capacity.
2.1.2 The severity of my medical condition substantially hindered my ability to discharge my duties as Treasurer effectively, particularly in maintaining regular communication with our statutory auditors.
2.1.3 My compromised mobility and recurring health episodes created operational gaps in the Trust's financial management and compliance oversight.
2.2 COVID-19 Pandemic Impact (2020-2021)
2.2.1 The COVID-19 pandemic severely exacerbated my health complications and imposed additional constraints:
Government-imposed lockdown restrictions limiting movement Increased vulnerability due to pre-existing health conditions Restricted access to medical care during the pandemic period Heightened risk of exposure given my compromised immune status 2.2.2 During the critical compliance period of 2020-2021, my mobility was severely restricted, rendering effective coordination with M/s Suvarna and Kadtare (located at Vile Parle) virtually impossible due to pandemic restrictions on face-to-face interactions.
2.3 Major Surgical Intervention (November 2021)
2.3.1 My health condition deteriorated to such an extent that major surgical intervention became medically necessary in November 2021.
2.3.2 The surgical procedure required extensive pre-operative preparation, hospitalization, and post- operative care, as evidenced by the discharge summary from Nanavati Hospital.
2.3.3 Post-surgery, I was medically advised complete rest for several months, during which I was physically incapable of attending to any Trust-related responsibilities.
2.3.4 The discharge summary from Nanavati Hospital detailing the surgical procedure and recovery requirements is annexed herewith as Annexure A.
2.3.5 My post-operative recovery extended well into 2022, during which my participation in Trust activities remained minimal and ineffective. rashtra
ATTEMPTS TO CONTINUE DUTIES DESPITE HEALTH CONSTRAINTS Bequest for Relief and Continuation (2021)
3.1.1 Recognizing the deteriorating impact of my health on my ability to discharge my duties as the honorary treasure, I formally requested relief from my duties as Treasurer during the Annual General Meeting held on March 29, 2021.
3.1.2 This request was made through a virtual ZOOM meeting during the pandemic, as recorded in the AGM minutes dated March 29, 2021.
3.1.3 However, due to the absence of suitable alternative candidates and the Trust's operational dependence on my experience, I was requested to continue until a suitable replacement could be identified and appointed.
3.1.4 Despite my health concerns, I agreed to continue in the hope of recovery, but unfortunately, my condition continued to deteriorate.
3.2 Compromised Performance (2021-2022)
3.2.1 Throughout 2021 and early 2022, I made sustained efforts to fulfil my responsibilities to the extent I could despite significant health constraints.
3.2.2 However, my reduced functional capacity resulted in material impact on several critical matters, including timely follow-up on tax compliance issues and statutory requirements.
3.2.3 The essential coordination with auditors and tax advisors, crucial for timely filing of appeals and compliance matters, was substantially compromised due to my inability to maintain regular and effective communication.
RESIGNATION AND TRANSITION (September 2022)
4.1 Following my surgery and prolonged recovery period, it became evident that I could no longer effectively discharge my duties as the Honorary Treasurer of the trust.
4.2 In September 2022, upon Mr. Balasubramanium's agreement to assume the position, I formally resigned from my role as honorary treasurer.
4.3 My resignation was formally accepted during the AGM held on September 25, 2022, as recorded in the official minutes.
4.4 My resignation letter, which comprehensively details my health struggles and their impact on my ability to serve the Trust, is annexed herewith as Annexure B.
DIRECT IMPACT ON APPEAL FILING DELAY 5.1 Operational Disruption 5.1.1 My prolonged illness and subsequent surgical intervention created significant disruption in the Trust's financial management and tax compliance processes.
5.1.2 Critical communication gaps emerged between the Trust and its statutory auditors/tax advisors during my period of incapacity.
5.1.3 Important documents, notices, and correspondence may not have been properly processed due to my inability to maintain regular oversight and the absence of adequate backup systems.
5.2 Institutional Dependency 5.2.1 The Trust, being managed by elderly trustees with limited understanding of complex tax was heavily dependent on my coordination with professional advisors.
5.2.2 My incapacity created a cascading effect on all compliance-related matters, as there was no alternative mechanism in place to handle such specialized functions 5.2.3 The new treasurer required substantial time to understand the Trust's financial matters, and my poor health prevented adequate handover assistance.
TRANSITION CHALLENGES AND DELAYED DISCOVERY (2022-2024)
6.1 New Treasurer's Learning Curve 6.1.1 Mr. Balasubramanium assumed the treasurer position in September 2022 without prior experience in trust administration or tax compliance matters.
6.1.2 Significant time was required to understand the complex charitable trust taxation provisions and the Trust's specific compliance requirements.
6.1.3 The absence of proper handover documentation due to my health condition further complicated the transition process. However, I continued to support the treasurer to the best of my ability and to the extent allowed by my health.
6.2 Critical Information Gaps 6.2.1 My illness resulted in incomplete handover of critical files, passwords, and correspondence records.
6.2.2 Key communications with auditors and tax authorities were scattered or missing, requiring extensive reconstruction efforts.
6.2.3 Digital records and email communications were not properly transferred, creating operational difficulties.
6.3 Delayed Discovery of Assessment Order 6.3.1 The assessment order may have been received during my illness period and consequently not processed with due attention.
6.3.2 The new treasurer discovered the assessment order only after assuming charge and conducting a comprehensive review of pending matters.
6.3.3 Email communications containing the assessment order may have been received in trustee accounts that were not properly monitored during the transition period.
EXTRAORDINARY CIRCUMSTANCES 7.1 The combination of my deteriorating health from 2019, COVID-19 pandemic restrictions, major surgery in November 2021, and prolonged recovery period constituted extraordinary circumstances beyond the reasonable control of the Trust.
7.2 These circumstances were unforeseeable and unavoidable, making it impossible for the Trust to maintain its usual standards of tax compliance and timely legal actions.
7.3 The delay in filing the appeal was not attributable to negligence or deliberate default but was a direct consequence of these extraordinary and unavoidable circumstances.
8. SUPPORTING DOCUMENTS 8.1 The following documents are annexed in support of this affidavit:
Annexure A: Discharge Summary from Nanavati Hospital (Surgery - November 2021) Annexure B: Resignation Letter of Mrs. Girija Menon (September 2022)
DECLARATION AND VERIFICATION Mahakali Ayyappa Seva Sangh, Mumbai. 9.1 I hereby solemnly declare that the facts stated in this affidavit are true to the best of my knowledge and belief, and nothing material has been concealed.
9.2 I understand that this affidavit is filed in support of the Trust's application for condonation of delay in filing the appeal.
9.3 sincerely regret that my health condition contributed to the delay in the Trust's compliance matters and respectfully submit that the circumstances were beyond reasonable control.
10 VERIFICATION I Mrs. Girija Haridas Menon, the deponent above named, do hereby verify that the contents of paragraphs 1 to 9 of this affidavit are true to my knowledge and belief, and nothing material has been concealed therefrom.
5. Considering the entire factual position as explained before us and also keeping in view, the principles laid down by Hon’ble Supreme Court in the case of Land Acquisition Collector Vs. Mst. Katiji & Ors., [1987] AIR 1353 (SC), wherein it has been held that were substantial justice is pitted against technicalities of non-deliberate delay, then in that eventuality substantial justice is to be preferred. In our view the principals of advancing substantial justice is of prime importance. Hence considering the explanation put forth by the Assessee by justifiably and properly explaining the delay which occurred in filing the appeal and construing the expression "sufficient cause" liberally I am inclined to condone the delay in filing the appeal before Ld. CIT(A).
Mahakali Ayyappa Seva Sangh, Mumbai. 6. Since I have already condoned the delay, therefore I restore the matter back to the file of Ld.CIT(A) for deciding the same on merits after providing fair opportunity of hearing to both the parties. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings.
7. Before parting, I make it clear that our decision to restore the matter back to the file of the Ld. CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute which shall be adjudicated by the Ld.CIT(A) independently in accordance with law.
In the result the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 22/09/2025