SAURABH SANJAY PAWAR,MUMBAI vs. DCIT CIRCLE 41(1)(1), MUMBAI

The brief facts of the case are that the assessee had filed the return by declaring total income amounting to Rs. 4,46,76,590/-. The case was being selected for scrutiny assessment under CASS to verify the different issues. Finally, the assessment was completed with an addition amount to Rs. 56,52,99,505/- relating to the short-term and long-term capital gain on sale of equity shares. The aggrieved assessee filed an appeal before the Ld. CIT(A) with a delay for three days. Also, the assessee filed an additional application for admitting additional ground before the Ld. CIT(A), but without considering the same in the point of limitation, the Ld. CIT(A) rejected the appeal of the assessee. Being aggrieved, the assessee filed an appeal before us.

The Ld. AR argued and filed a paper book comprising pages 1 to 36, which has been placed on record. The Ld. AR contended that before the Ld. CIT(A) the appeal was filed with a delay for two (2) days. The said ordinary delay was not being condoned by Ld. CIT(A) and rejected the appeal of the assessee. The Ld. AR contended that the assessee also filed an application for admitting additional ground before the Ld. CIT(A), which is also enclosed in APB page 1 to 8, which was not considered by the Ld. CIT(A) during passing the impugned order. The Ld. AR prayed to restore the matter before the Ld. CIT(A) for considering for appeal on merit.

The Ld. DR argued and stands in favor of the order of revenue authorities. But the Ld. DR had not made any strong objection against the submission made by the Ld. AR.

We heard the rival submission and considered the documents available in the record. The assessee filed the return and the assessee's case was taken for scrutiny under CASS. After due scrutiny, the addition was duly confirmed by the Ld. AO. The assessee had challenged the impugned assessment order before the Ld. CIT(A). The impugned appellate order was passed ex-parte on the ground of limitation. Considering the facts and circumstances of the case and in the interest of substantial justice, we deem it appropriate to set aside the impugned appellate order and restore to the file of Ld. CIT(A) for adjudication on merit. The assessee is directed to file the fresh explanation related to the reasons for delay of two (2) days before the Ld. CIT(A). The Ld. CIT(A) is directed to consider the condonation petition in accordance with law and condone the delay for two days and pass the order on merit.

The additional ground filed by the assessee is also admitted and taken on record. The assessee is also directed to submit the said additional ground before the Ld. CIT(A) for adjudication. We make it clear that no view is expressed on merits of the additions or on legal grounds raised by the assessee, and all such issues are kept open for adjudication before the Ld. CIT(A).

In the result, the appeal of the assessee bearing ITA No. 7754/Mum/2026 is allowed for statistical purposes. Order pronounced in the open court on 10th day of September 2026.