KAZHETO ALOLI KINIMI,DIMAPUR vs. INCOME TAX OFFICER, WARD 1, DIMAPUR

1 The Registry has informed that the appeal is barred by limitation by 32 days. The assessee has filed a petition for condonation of delay explaining the reasons that due to the continued ill-health, the assessee could not manage to execute and upload all the documents along with petition for condonation of delay of 2 days by 02.02.2026 and the assessee could upload the documents along with petition for condonation of delay only on 04.03.2026. The assessee has requested the Bench that since the delay in filing the appeal was purely due to ill health and without any mala fide intention or negligence the same may be condoned. After perusing the same, we are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within the statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication.

The Assessee is in appeal before the Tribunal raising the following grounds of appeal:

Brief facts of the case are that the assessee is an individual and had not filed the return of income for AY 2016-17. As per the information available with the Department, the Assessing Officer (hereinafter referred to as Ld. 'AO') found that the assessee had made cash deposits of ₹73,97,900/- in the bank account maintained with various banks. The Ld. AO provided several opportunities to submit the relevant details/documents in regard to the financial transactions to the assessee but the assessee remained non-compliant. Therefore, the Ld. AO added the amount of ₹73,97,900/- as unexplained cash credit u/s 68 of the Act to the total income of the assessee and assessed the total income u/s 147 r.w.s. 144 r.w.s. 144B of the Act. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A) who dismissed the appeal of the assessee on the ground of delay in filing the appeal before the Ld. CIT(A).

Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal.

None appeared on behalf of the assessee and the case was heard with the assistance of the Ld. DR.

We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(A). The Bench noted that the Ld. CIT(A) had invoked the provisions of section 249(3) of the Act and dismissed the appeal of the assessee on the sole ground of delay in filing the appeal before him without adjudicating the case on merits. The assessee had requested for condonation of delay as under: “The appellant is an individual and a member of a Schedule Tribe which is a recognised Schedule Tribe under The Constitution (Schedule Tribes) order 1950 and is a permanent resident of Nagaland. That section 10(26) of the Income Tax Act, 1961 (here-in-after referred to as the Act), states that income of a Scheduled Tribe member accruing or arising from any sources in the areas or States, shall not be included in the persons total income for the previous year. That the assessee is a member of Schedule Tribe and resides in the area specified where her income is entirely exempt in income tax. That the income of the appellant is exempt U/s.10(26) of the Act and the total income never exceeded the maximum amount which is chargeable to income tax as per the provisions of section 139(1) of the Act. That the appellant is not proficient in using the internet and e-mails and was under a bonafde belief that no order of assessment with demand would be passed as the income was exempt u/s 10(26) of the Act. Additionally, since the appellant is exempt u/s 10(26) of the Act and is not require to file the return of income in accordance with section 139(1) of the Act, the appellant used the Income Tax portal, the least and therefore was never fully aware of any notices/letters/orders issued/ passed for the assessment year under appeal. Further, passing of Order u/s 147 read with 144, proves that the appellant was completely unaware about the consequences of the proceedings. Also, since entire income is exempt, the appellant had little knowledge about income tax provisions. It is only when she approached a consultant for some financial work, she got the information that such and such proceedings have completed and she has to file an appeal and that she has 30 days to file the same from the date of service. That Sir, after the appellant got the information, it was made sure to file an appeal within next 30 days. Sir, since the entire income is exempt and had little knowledge about income tax provisions and no proper knowledge of the proceedings, has led to delay in fling of this appeal. Sir, the assessee humbly requests you to please accept her condonation request and the appeal.”

The Bench was of the view that the delay in filing the appeal ought to have been condoned and the appeal should have been decided on merits as per section 250(6) of the Act. The assessee had claimed income to be exempt u/s 10(26) of the Act. Since there was no proper compliance before both the Ld. AO as well as the Ld. CIT(A) and the assessee had sufficient cause for the delay in filing the appeal before the Ld. CIT(A), in the interest of justice and fair play it was considered that the request of the assessee to set aside the case before the Ld. AO may be allowed so that a proper opportunity of being heard may be provided. Hence, after examining the facts of the case, we deem it appropriate to set aside the order of the Ld. CIT(A) and remit the matter back to the Ld. AO for making the reassessment de novo. Needless to say, the assessee shall be given a reasonable opportunity of being heard to make any further submission she wants to make in support of the grounds of appeal and shall not seek unnecessary adjournments. Accordingly, the grounds taken by the assessee in the appeal are partly allowed for statistical purposes.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 2nd June, 2026. [Sonjoy Sarma] [Rakesh Mishra] Judicial Member Accountant Member Dated: 02.06.2026 Bidhan (Sr. P.S.)

CIT-

CIT(DR), Guwahati Benches, Guwahati.

Guard File. //// By order