HARSHAL RAJENDRAKUMAR TOKASE,PUNE vs. INCOME TAX OFFICER, WARD 3(1), NASHIK

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ITA 2465/PUN/2025Status: DisposedITAT Pune02 September 2026AY 2017-186 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the delay in filing the appeal before the CIT(A) was supported by sufficient cause and that a pragmatic approach should have been taken. The assessee was granted one more opportunity to substantiate their case before the CIT(A).

What were the facts?

The assessee filed an appeal with the CIT(A) after a delay, which was dismissed in limine without condonation. The Assessing Officer had made an addition of unexplained cash deposits under section 69A due to non-compliance by the assessee.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) was sufficiently explained and should have been condoned. Whether the assessee should be granted an opportunity to present their case on merits.

Which sections of the Income-tax Act were involved?

Section 144,Section 250,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE

Before: SHRI PAVAN KUMAR GADALE & DR. MANISH BORAD

Hearing: 01.09.2026Pronounced: 02.09.2026

PER PAVAN KUMAR GADALE, JUDICIAL MEMBER The assessee has filed the appeal against the order of CIT(A)/NFAC, Nasik passed u/sec 144 and u/sec250 of the Income Tax Act for the Assessment Year 2017-18. The assessee has raised the grounds of appeal challenging the order of the CIT(A) in not condoning the delay in filing the appeal and sustaining the addition made by the Assessing Officer.

2.

The brief facts of the case are that, the assessee has filed the return of income for the A.Y. 2017-18 on 03.03.2018 disclosing a total income of Rs. 3,04,200/-. Subsequently, the case was selected for limited scrutiny under “CASS” and notice under Section 143(2) and u/sec 142(1) of the Act are issued along with the questionnaire to furnish the details with documentary evidences in support of return of income filed and there was no response. Whereas. Assessing Officer (A.O) find that the assessee has made substantial cash deposits in the bank account maintained with Nashik Merchants co-op. Bank Ltd., Nashik and the assessee was called to explain the sources of cash deposits and there was no compliance. The A.O find that the assessee has not made submissions on the disputed issue in spite of providing adequate opportunities of hearing and finally the A.O considering the information available on record has invoked the provisions of section 144 of the Act and made addition of unexplained cash deposits u/sec69A of the Act of Rs.1,11,87,147/- and assessed the total income of Rs. 1,14,91,350/- and passed the order under Section 144 of the Act dated 25.11.2019. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A). However, the CIT(A) found that there is a delay in filing the appeal and the assessee has not explained the sufficient reasons for the delay. He further did not condone the delay and dismissed the assessee’s appeal in limine. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal. 4 . At the time of hearing, the Ld.AR submitted that the CIT(A) has not considered the facts and valid reasons of the assessee and the delay in filling the appeal was neither deliberate nor wanton act, but the circumstances beyond the control of the assessee. The Ld.AR emphasized that the assessee has a good case on merits and prayed for an opportunity to substantiate with material evidences before the lower authorities. Per contra, the Ld. DR supported the order of the CIT(A).

5.

We heard the rival submissions and perused the material on record. Prima-facie, the CIT(A) has passed the order considering the fact that there is no proper compliance by the assessee in spite of providing adequate opportunity of hearing and the delay in filling the appeal was not explained with reasonable cause. Whereas the assessee has raised grounds of appeal challenging addition of unexplained cash deposits u/sec69A of the act made by the Assessing Officer and there could be various reasons for no proper compliance. Whereas the assessee has made a request for condonation of delay in filling the appeal and filed an affidavit. Therefore, considering the facts, provisions and the condonation of delay request are of the opinion that there is a reasonable cause in filing of the appeal with delay and there is no benefit derived in causing delay in filing the appeal before the CIT(A). Further the Hon’ble Supreme Court in case ofB. MadhuriGoudvrs. B. Damodar Reddy (2012) 12 SCC 693, has held that the following principles must be kept in mind while considering the application for condonation of delay; (i) There should be a liberal, pragmatic, justice oriented, non- pedantic approach while dealing with an application for condonation of delay, for the courts are not supposed to legalise injustice but are obliged to remove injustice. (ii) The terms “sufficient cause” should be understood in their proper spirit, philosophy and purpose regard being had to the fact that these terms are basically elastic and are to be applied in proper perspective to the obtaining fact-situation. (iii) Substantial justice being paramount and pivotal the technical considerations should not be given undue and uncalled for emphasis.

(iv) No presumption can be attached to deliberate cause of delay but, gross negligence on the part of the counsel or litigant is to be taken note of. (v) Lack of bona fides imputable to a party seeking condonation of delay is a significant and relevant fact. (vi) It is to be kept in mind that adherence to strict proof should not affect public justice and cause public mischief because the courts are required to be vigilant so that in the ultimate eventuate there is no real failure of justice. (vii) The concept of liberal approach has to encapsulate the conception of reasonableness and it cannot be allowed a totally unfettered free play. (viii)There is a distinction between inordinate delay and a delay of short duration or few days, for to the former doctrine of prejudice is attracted whereas to the latter it may not be attracted. That apart, the first one warrants strict approach whereas the second calls for a liberal delineation. (ix) The conduct, behaviour and attitude of a party relating to its inaction or negligence are relevant factors to be taken into consideration. It is so as the fundamental principle is that the courts are required to weigh the scale of balance of justice in respect of both parties and the said principle cannot be given a total go by in the name of liberal approach. (x) If the explanation offered is concocted or the grounds urged in the application are fanciful, the courts should be vigilant not to expose the other side unnecessarily to face such litigation. (xi) It is to be borne in mind that no one gets away with fraud, is representation or interpolation by taking recourse to the technicalities of law of limitation. (xii) The entire gamut of facts are to be carefully scrutinized and the approach should be based on the paradigm of judicial discretion which is founded on objective reasoning and not on individual perception. (xiii) The State or a public body or an entity representing a collective cause should be given some acceptable latitude.”

6.

The Hon'ble supreme court in the case of Collector, Land Acquisition Vs. MST Katiji& others (167 ITR 471) (SC) has observed as under :

“ The legislature has conferred the power to condone delay by enacting s. 5 of the Limitation Act of 1963 in order to enable the Courts to do substantial justice to parties by disposing of matters on "merits". The expression "sufficient cause" employed by the legislature is adequately elastic to enable the Courts to apply the law in a meaningful manner which subserves the ends of justice—that being the life-purpose of the existence of the institution of Courts. The doctrine of equality before law demands that all litigants, including the State as a litigant, are accorded the same treatment and the law is administered in an even-handed manner. There is no warrant for according a step-motherly treatment when the "State" is the applicant praying for condonation of delay. In fact, experience shows that on account of an impersonal machinery (no one in charge of the matter is directly hit or hurt by the judgment sought to be subjected to appeal) and the inherent bureaucratic methodology imbued with the note- making, file- pushing, and passing-on-the-buck ethos, delay on its part is less difficult to understand though more difficult to approve. In any event, the State which represents the collective cause of the community does not deserve a litigant non grata status. The Courts, therefore, have to be informed of the spirit and philosophy of the provision in the course of the interpretation of the expression "sufficient cause". So also the same approach has to be evidenced in its application to matters at hand with the end in view to do even-handed justice on merits in preference to the approach which scuttles a decision on merits.”

7.

We respectfully follow the observations and ratio of the decisions of Hon’ble Supreme Court cited(supra) and find that the delay in filing the appeal before the CIT (Appeals) by the assessee is supported with sufficient cause and therefore pragmatic approach should have been condoned. Further considered and the delay is considering facts, circumstances and principles of natural justice, the assessee shall be provided with one more opportunity of hearing to substantiate the case along with the evidences and information subject to payment of cost of Rs.2,000/- to Maharashtra State Legal Services Authority within one months from the date of receipt of the order and produce the proof of payment. Accordingly, set aside the order of the CIT(A)

and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of appeal of the assessee are allowed for statistical purposes.

8.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open Court on 02nd September, 2026. MANISH BORAD PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIALMEMBER) Pune, Dated: 02nd September, 2026 Abhishek Mohan Abhishek Mohan Mohan Date: 2026.09.03 15:28:12 +05'30' आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

2.3.

The Pr. CIT concerned. 4. तिभागीयप्रतितिति,आयकरअिीिीयअतिकरण, “A” बेंच, पुणे/ DR, ITAT, “A” Bench, Pune. गार्डफ़ाइि / Guard File. 5. ////

आदेशािुसार / BY ORDER,

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