MANJU MEWARA AGRAWAL,BHOPAL vs. INCOME TAX OFFICER - WARD3(1), BHOPAL

आदेश/ O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first-appeal dated 10.05.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 11.03.2016 passed by learned ITO-3(1), Bhopal [“Ld. AO”] u/s 144 r.w.s. 147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2008-09, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).

therefore time-barred. The assessee has filed an application/ affidavit for

condonation of delay; the same is scanned and re-produced for an

immediate reference:

explanatory and which do not require repetition, were discussed and the Ld.

DR for revenue does not have any serious objection if the bench condones

delay and accordingly left it to the wisdom of bench. We have considered the

explanation advanced by assessee and in absence of any contrary fact or

material on record, the assessee is found to have a “sufficient cause” for

delay in filing present appeal. We find that section 253(5) of the Act

empowers the ITAT to admit an appeal after expiry of prescribed time, if

there is a “sufficient cause” for not presenting appeal within prescribed time.

It is also a settled position by Hon’ble Supreme Court in Collector, Land

Acquisition Vs Mst. Katiji and others 1987 AIR 1353, 1987 2 SCC 387

that whenever substantial justice and technical considerations are opposed

to each other, the cause of substantial justice must be preferred by adopting

a justice-oriented approach. Thus, taking into account the facts of case, the

provision of section 253(5) and the decision of Hon’ble Supreme Court, we

take a judicious view, condone delay, admit appeal and proceed with

hearing.

assessee-individual did not file any return of AY 2008-09. The AO, on the

basis of AIR information revealing that the assessee made investment of Rs.

7,50,000/- in mutual funds, issued notice dated 26.03.2015 u/s 148 to

make assessment u/s 147. The AO also issued notices u/s 143(2)/142(1)/

final show-cause notice but all those notices remained uncompiled by assessee. Ultimately, the AO passed ex-parte assessment-order after

assessing income of Rs. 7,50,000/- on account of unexplained investment.

Aggrieved, the assessee carried matter in first appeal but again could not

participate whereupon the Ld. CIT(A) approved AO’s order and dismissed

assessee’s appeal. Now, the assessee has come in next appeal before us.

assessee in the affidavit for condonation of delay (re-produced above) and

submitted that the assessee is a non-resident residing outside India for last

40 years (although the AO has made ex-parte assessment in present case

adopting the status of ‘resident’) and that the notices issued by AO and

CIT(A) did not reach to assessee as the same were sent by authorities to the

physical/e-mail address of assessee’s late brother “Shri Satish Mewara”.

However, the assessee did not have any intent to disobey the proceedings of

income-tax. He submitted that the investment in mutual funds, considered

by AO for making impugned addition of Rs. 7,50,000/-, was made through

banking channel and the assessee has explainable source of investment. He

submitted that the assessee is having in his possession, all relevant details

and documents and ready to make an effective representation before Ld. AO.

He prayed that in the interest of justice, one more opportunity be given to

assessee by way of restoring this matter at the level of Ld. AO. He

acknowledged that the assessee shall definitely make a proper and effective

representation before Ld. AO.

restoration, submitted that the assessee had remained non-compliant

during the assessment proceedings as well as proceedings of first-appeal,

which constrained the lower authorities to pass ex-parte orders. It was,

therefore, submitted that while restoring the matter, appropriate directions

may be issued to ensure strict compliance by the assessee.

of natural justice and also bearing in mind that no prejudice would be

caused to revenue if the present matter is restored at the level of Ld. AO, we

restore this matter to the file of Ld. AO for adjudication afresh, at the risk

and responsibility of assessee. The Ld. AO shall give necessary opportunity

of hearing to assessee and pass an appropriate order uninfluenced by his

earlier order. The assessee is also directed to remain vigilant and ensure

participation in the hearings as may be fixed by Ld. AO without seeking

unnecessary adjournments failing which the Ld. AO shall be at liberty to

proceed in accordance with law. Ordered accordingly.

Order pronounced in open court on 24/04/2026

Sd/- sd/-

(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 24/04/2026

Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

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