LATE SURYAKANT SHANTARAM BANE (THROUGH LEGAL HEIR-SANDEEP SURYAKANT BANE),MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX 42(1)(1), MUMBAI, MUMBAI

Brief facts relevant for adjudication of the instant appeal are that the assessment was completed vide order dated 07.03.2024, passed u/s 147 r.w.s. 144B of the Act, whereby the Assessing Officer (in short, “AO”) made an addition of Rs.70,00,000/- as unexplained investment u/s 69 of the Act. The Assessee challenged the said addition by filing the first appeal before the Ld. Commissioner, however, with a delay of 608 days.

In Column No.15 of Form No.35, the Assessee explained the delay as under:

Subsequently, during a routine inspection of the income-tax portal, the consultant of the Assessee became aware that the revision petition had already been disposed of vide order dated 16.10.2025. Thereafter, upon obtaining advice from another counsel, the Assessee filed the first appeal, albeit with a delay of 608 days. In support of the application seeking condonation of delay, the Assessee also filed a duly sworn affidavit explaining the aforesaid circumstances.

We have given thoughtful consideration to the peculiar facts and circumstances of the case. It is evident that the Assessee had pursued the remedy of revision u/s 264 of the Act against the assessment order and, upon becoming aware of the disposal thereof, filed the statutory appeal before the Ld. Commissioner. The explanation furnished by the Assessee, duly supported by an affidavit, prima facie appears to be plausible, bona fide and sufficient to explain the delay. There is nothing on record to suggest that the delay was deliberate or occasioned by any mala fide intention.

Thus, considering the peculiar facts and circumstances, we are satisfied that the Assessee was prevented by sufficient cause from filing the first appeal within the prescribed period. Accordingly, the delay of 608 days in filing the first appeal before the Ld. Commissioner is condoned.

Coming to the merits, since the Ld. Commissioner dismissed the appeal in limine on the ground of limitation without adjudicating the issues on merits, we deem it appropriate to remand the case to the file of the Ld. Commissioner for adjudication afresh on merits.

Accordingly, the case is remanded to the file of the Ld. Commissioner for decision afresh on merits, suffice to say, by affording a reasonable opportunity of being heard to the Assessee and considering the material and submissions placed or to be placed on record. The Ld. Commissioner shall decide each ground raised by the Assessee in accordance with law and pass a speaking order. The Assessee is also directed to furnish the requisite documents and submissions in support of its claim without unnecessary delay or default. We clarify that, in case of any unjustified default, the Assessee shall not be entitled to any leniency.

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