KANHAIYA LAL DATWANI,NEW DELHI vs. INCOME TAX OFFICER WARD 49(1), CIVIC CENTRE , CIVIC CENTRE, NEW DELHI

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ITA 2845/DEL/2026Status: DisposedITAT Delhi16 July 2026AY 2016-173 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before the CIT(A) by holding that the assessee had sufficient cause. The matter was restored to the AO to pass a fresh order after providing an opportunity of being heard.

What were the facts?

The assessee filed an appeal before the CIT(A) with a delay of 119 days. The assessee, an NRI for 28 years with no taxable income in India, claimed ignorance of the assessment order until later. The CIT(A) dismissed the appeal without condoning the delay.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) was to be condoned based on the assessee's NRI status and lack of knowledge of the assessment order.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI

For Appellant: Shri Pranshu Singhal, CA &, Shri Rahul Bhardwaj, Adv
For Respondent: Shri Tarun Sharda, Sr. DR
Hearing: 16/07/2026Pronounced: 16/07/2026

PER MANISH AGARWAL, AM:

This appeal is filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), Delhi 42 [CIT(A) in short], dated 31.01.2026 in Appeal No. NFAC/2015-16/10388780 arising out of the assessment order passed u/s 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 (the Act, in short) dated 12.02.2024 for Assessment Year 2016-17.

2.

In Ground of appeal No 3, assessee has challenged the order of ld. CIT(A) in dismissing the appeal of the assessee by not condoning the delay. It is observed that Ld. CIT(A) has not admitted the appeal of the assessee as it was filed delayed

2 ITA No.2845/Del/2026 Kanhaiya Lal Datwani by 119 days before the Ld. CIT(A). The reasons given in delay condonation petition filed before the ld. CIT(A) was that the assessee was NRI for past 28 years and having no taxable income in India and when he gained the knowledge about the passing of the assessment order, he took the legal advice and filed the appeal. Under these circumstances, the appeal was filed delayed before the ld. CIT(A) by 119 days. The reasons being sufficient, therefore, it was prayed before the Ld. CIT(A) to condone the delay and decide the appeal on merits. However, the ld. CIT(A) has not condoned the delay and dismissed the appeal of the assessee.

3.

Before us, the ld. AR for the assessee reiterated the same facts and requested to condone the delay in filing the appeal before the ld. CIT(A) and further, requested to decide the appeal of the assessee on merits.

4.

Per contra, Ld. Sr DR vehemently opposed the request of the assessee for condonation of delay and stated that the delay was of 119 days for which the assessee has failed to give any reasonable explanation and therefore, prayed the order of ld. CIT(A) should be confirmed.

5.

After hearing both the parties and considering the facts of the case, we find that the assessee has been able to make out a case that he has reasonable and sufficient cause for delay in filing the appeal before the Ld. CIT(A) as he is NRI for past 28 years and had no taxable income in India. There is no mala fide imputable to the assessee. It must be remembered that in every case of delay there can be some lapse of the litigant concerned. That alone is not enough to turn down the plea and to shut the doors against him. If the explanation does not smack of mala fide or it is not put-forth as a part of dilatory strategy, the Courts must utmost consideration to such litigant. Therefore, to subserve the principal of natural justice and respectfully

3 ITA No.2845/Del/2026 Kanhaiya Lal Datwani following the judgement of Hon’ble Supreme Court in the case of Collector of Land Acquisition vs Mst . Katiji & Ors. reported in 167 ITR 471, we condone the delay in filing the appeal before the CIT(Appeals) and restore the matter to the file of AO to pass the order denovo afresh, after providing reasonable opportunity of being heard to the assessee. Thus, Ground of appeal No. 3 raised by the assessee is allowed for statistical purposes.

6.

Since we have allowed ground of appeal No.3 raised by the assessee, remaining grounds of appeal become academic.

7.

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

Order pronounced in the open court on 16.07.2026.

Sd/- Sd/-

(MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated:17.07.2026. *Amit Kumar, Sr. P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

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