DARSHANA DINESH GHAG,MUMBAI vs. ITO WARD-42(1)(2), MUMBAI

The grievance of the assessee, in its essential contour, is twofold: firstly, the dismissal of the first appeal on the ground of delay without adjudication on merits; and secondly, the additions made in the reassessment proceedings, which, according to the assessee, have been fastened without affording any effective opportunity of hearing.

At the very outset, it is an admitted position that the appeal before the ld. CIT(A) was filed with a delay of 126 days. The assessee has, in support of the petition for condonation, filed a duly sworn affidavit setting out, with particularity and clarity, the circumstances which occasioned such delay. The averments contained therein, forming part of the record , merit careful consideration, for they constitute the substratum of the assessee’s explanation.

From a holistic reading of the affidavit, it transpires that the assessee had categorically stated that she had not received any statutory notices issued under section 142(1) nor the assessment order dated 18.03.2025. The reason for such non-receipt has been attributed to the fact that the notices were dispatched to an old residential address, which the assessee had vacated as early as in the year 2017. The affidavit specifically delineates both the old and the new addresses, thereby lending credibility to the assertion that the

The assessee has further averred that she was suffering from ill-health during the relevant period when the assessment proceedings culminated, and on account of such circumstances, she remained unaware of any proceedings that may have been initiated by the Department. This assertion has not been controverted by any material brought on record by the Revenue. It is also borne out from the affidavit that the assessee was not a regular filer of returns and had, in fact, created her account on the income-tax portal for the first time only in August 2025, primarily for the purpose of claiming TDS credit. It was only upon such registration that she came to know of the impugned reassessment order, whereupon she acted with promptitude and filed the appeal before the ld. CIT(A) on 22.08.2025.

The sequence of events, as narrated in the affidavit, thus reveals that the delay was neither deliberate nor attributable to any negligence or inaction on the part of the assessee, but was occasioned by a confluence of factors, namely, non- service of notices at the correct address, lack of knowledge of

In the present case, we find no element of mala fide or dilatory tactic in the conduct of the assessee. On the contrary, the moment the assessee became aware of the assessment order, she took immediate steps to avail the appellate remedy. In such circumstances, the refusal of the ld. CIT(A) to condone the delay and the consequent dismissal of the appeal in limine, without adverting to the merits of the case or the veracity of the affidavit, cannot be sustained. The ld. CIT(A), being a quasi-judicial authority, was under an obligation to examine the explanation furnished and render a reasoned finding thereon, which, in the present case, is conspicuously absent.

Coming to the assessment proceedings, it is an undisputed position that the assessment has been framed ex

Having regard to the aforesaid factual matrix, it becomes manifest that the assessee has been deprived of a fair and reasonable opportunity of being heard at both stages, namely before the Assessing Officer as well as before the ld. CIT(A), primarily on account of non-service of notices at the correct address and consequent lack of knowledge of the proceedings. Such denial of opportunity goes to the root of the matter and vitiates the entire assessment proceedings, for it is a settled canon that no person should be condemned unheard. In these circumstances, and in the interest of substantial justice, we set aside the impugned order of the ld. CIT(A) as well as the assessment order passed under section 147 read with section 144, and restore the entire matter to the file of

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