AFZAL ABDUL KHALIQ AHMED ,MUMBAI vs. ACIT, CIRCLE 3(1)(1), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H (SMC)” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI ANIKESH BANERJEE (JUDICIAL MEMBER) ITA No. 1635/MUM/2026 Assessment Year: 2019-20

Afzal Abdul Khaliq Ahmed Vs. Assistant Commissioner, Circle R/o 5, Chunawala Estate, 3(1)(1), Aayakar Bhawan, New Kondivitta Road, V/s. J.B. Marine Line, Churchgate, Nagar, Andheri (East) 400059. Mumbai 400020.

PAN NO. AJIPJ1807F Assessee Respondent

Assessee by : None : Shri. Pravin Salunkhe (Sr. Dr.) Revenue by Date of Hearing : 13/04/2026 : 20/04/2026 Date of pronouncement ORDER PER OM PRAKASH KANT, AM

This appeal has been preferred by the assessee against order dated 18.06.2025 passed by the learned Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre (NFAC), Delhi [in short ‘the ld. CIT(A)’], for assessment year 2019-20, raising following grounds:

ITA No. 1635/MUM/2026 ITA No. Afzal Abdul Khaliq Ahmed Afzal Abdul Khaliq Ahmed which is duly registered under Section29A of the representation of the which is duly registered under Section29A of the representation of the which is duly registered under Section29A of the representation of the people Act 1951 and having registration people Act 1951 and having registration No. 56/171/2013/PPS 56/171/2013/PPS-1 PAN and AAGM0071Q respectively. AAGM0071Q respectively. 3. Because the CIT(A) has erred in passing the order the assessee has Because the CIT(A) has erred in passing the order the assessee has Because the CIT(A) has erred in passing the order the assessee has fulfilled all the conditions stipulated in Section 80GGC of the Act fulfilled all the conditions stipulated in Section 80GGC of the Act fulfilled all the conditions stipulated in Section 80GGC of the Act 4. The E-mail I'd registered on designated portal was not asses mail I'd registered on designated portal was not assessee's email mail I'd registered on designated portal was not asses I'd and the concern person failed to intimate the appellant. I'd and the concern person failed to intimate the appellant. I'd and the concern person failed to intimate the appellant. 2. At the outset, it is observed that there is a delay of 534 days in At the outset, it is observed that there is a delay of 534 days in At the outset, it is observed that there is a delay of 534 days in filing the present appeal, as pointed out by the Registry. The filing the present appeal, as pointed out by the Registry. filing the present appeal, as pointed out by the Registry. assessee, by way of an application for condonation of delay, has assessee, by way of an application for condonation assessee, by way of an application for condonation explained that the email address registered on the designated explained that the email address registered on the designated explained that the email address registered on the designated income-tax portal belonged to an employee, who received the tax portal belonged to an employee, who received the tax portal belonged to an employee, who received the notices issued by the Learned CIT(A) but failed to bring the same to notices issued by the Learned CIT(A) but failed to bring the same to notices issued by the Learned CIT(A) but failed to bring the same to the notice of the assessee. Consequently, no compliance could be the notice of the assessee. Consequently, no compl the notice of the assessee. Consequently, no compl made during the appellate proceedings. It has been contended that made during the appellate proceedings. It has been contended that made during the appellate proceedings. It has been contended that the delay was neither deliberate nor intentional, but was occasioned the delay was neither deliberate nor intentional, but was occasioned the delay was neither deliberate nor intentional, but was occasioned due to the inaction and omission on the part of the concerned due to the inaction and omission on the part of the concerned due to the inaction and omission on the part of the concerned employee.

2.1 Having considered the explanat Having considered the explanation and the material on record, ion and the material on record, we are satisfied that the assessee was prevented by a reasonable we are satisfied that the assessee was prevented by a reasonable we are satisfied that the assessee was prevented by a reasonable and bona fide cause from filing the appeal within the prescribed and bona fide cause from filing the appeal within the prescribed and bona fide cause from filing the appeal within the prescribed time. It is well settled that when substantial justice and technical time. It is well settled that when substantial justice and technical time. It is well settled that when substantial justice and technical considerations are pitted considerations are pitted against each other, the cause of against each other, the cause of substantial justice deserves to prevail. substantial justice deserves to prevail. Accordingly, the delay of 534 Accordingly, the delay of 534 days is condoned, and the appeal is admitted for adjudication. days is condoned, and the appeal is admitted for adjudication. days is condoned, and the appeal is admitted for adjudication.

ITA No. 1635/MUM/2026 ITA No. Afzal Abdul Khaliq Ahmed Afzal Abdul Khaliq Ahmed 3. We have heard the submissions of We have heard the submissions of Ld Departmental Ld Departmental representative on the grounds raised by the assessee. the grounds raised by the assessee. The assessee the grounds raised by the assessee. has raised various grounds challenging the impugned order, inter has raised various grounds challenging the impugned order, inter has raised various grounds challenging the impugned order, inter alia, on account of denial of adequate opportunity of hearing, non- alia, on account of denial of adequate opportunity of hearing, non alia, on account of denial of adequate opportunity of hearing, non consideration of claim under section 80GGC of the Act, and consideration of claim under section 80GGC of the Act, and consideration of claim under section 80GGC of the Act, and procedural lapses in service of notices. es in service of notices.

3.1 It is evident from the impugned order that the Learned CIT(A) It is evident from the impugned order that the Learned CIT(A) It is evident from the impugned order that the Learned CIT(A) has dismissed the appeal primarily on account of non-compliance has dismissed the appeal primarily on account of non has dismissed the appeal primarily on account of non by the assessee with the notices issued during the appellate by the assessee with the notices issued during the appellate by the assessee with the notices issued during the appellate multiple opportunities, proceedings. The order records that despite proceedings. The order records that despite multiple opportunities, no submissions were filed by the assessee, and accordingly, the no submissions were filed by the assessee, and accordingly, the no submissions were filed by the assessee, and accordingly, the appeal was decided on the basis of material available on record. The appeal was decided on the basis of material available on record. appeal was decided on the basis of material available on record. relevant finding of the Ld. CIT(A) relevant finding of the Ld. CIT(A) is reproduced as under: is reproduced as under:

“5. During the course of appellate pro During the course of appellate proceedings vide notice dated ceedings vide notice dated 01.05.2025, 23.05.2025, 02.06.2025 and the final opportunity was given 01.05.2025, 23.05.2025, 02.06.2025 and the final opportunity was given 01.05.2025, 23.05.2025, 02.06.2025 and the final opportunity was given on 10.06.2025 and requested the appellant to file the submission by on 10.06.2025 and requested the appellant to file the submission by on 10.06.2025 and requested the appellant to file the submission by 17.06.2024 and stated in the notice as under- 17.06.2024 and stated in the notice as under "Last Opportunity is being given to submit your reply on or before "Last Opportunity is being given to submit your reply on or before 17.06.2024 failing which case will be decided on merits based on the 17.06.2024 failing which case will be decided on merits based on the 17.06.2024 failing which case will be decided on merits based on the available records." However, no submissions were made by the appellant. The appellant However, no submissions were made by the appellant. The appellant However, no submissions were made by the appellant. The appellant during the appellate proceedings did not comply with the notices and hence during the appellate proceedings did not comply with the notices and hence during the appellate proceedings did not comply with the notices and hence made no submission in support of grounds of appeal. So, it is held that the ade no submission in support of grounds of appeal. So, it is held that the ade no submission in support of grounds of appeal. So, it is held that the appellant had nothing more to submit except for raising the ground. appellant had nothing more to submit except for raising the ground. appellant had nothing more to submit except for raising the ground. 5.1 The Hon'bleITAT in ITA No. 1025-1027/Chandi/2005 for the A.Y. 2002 5.1 The Hon'bleITAT in ITA No. 1025 1027/Chandi/2005 for the A.Y. 2002- 03 in the case of M/s Chhabra Land and Housing Ltd. after following the 03 in the case of M/s Chhabra Land and Ho using Ltd. after following the decision of Hon'ble Supreme Court in the case of B.N. Bhattachargee, 118 decision of Hon'ble Supreme Court in the case of B.N. Bhattachargee, 118 decision of Hon'ble Supreme Court in the case of B.N. Bhattachargee, 118 ITR 461 (SC) held that the appeal does not mean merely filing of the appeal ITR 461 (SC) held that the appeal does not mean merely filing of the appeal ITR 461 (SC) held that the appeal does not mean merely filing of the appeal

ITA No. 1635/MUM/2026 ITA No. Afzal Abdul Khaliq Ahmed Afzal Abdul Khaliq Ahmed but effectively pursuing it. Keeping in view of the aforesaid factual positi but effectively pursuing it. Keeping in view of the aforesaid factual positi but effectively pursuing it. Keeping in view of the aforesaid factual position, the appeal filed by the appellant is, therefore, decided on merits. the appeal filed by the appellant is, therefore, decided on merits. the appeal filed by the appellant is, therefore, decided on merits. 6. In the instance of the case the appellant failed to make any submissions In the instance of the case the appellant failed to make any submissions In the instance of the case the appellant failed to make any submissions in support of grounds of appeal, this gives rise to an undisputable in support of grounds of appeal, this gives rise to an undisputable in support of grounds of appeal, this gives rise to an undisputable conclusion that the assessee has got nothing more to say in this regard. I conclusion that the assessee has got no thing more to say in this regard. I have gone through the record before me and based on the record I have have gone through the record before me and based on the record I have have gone through the record before me and based on the record I have decided to adjudicate the issue on the merits of the case. In the instant decided to adjudicate the issue on the merits of the case. In the instant decided to adjudicate the issue on the merits of the case. In the instant case the AO has rightly assessed an income of Rs.18,22,660/ case the AO has rightly assessed an income of Rs.18,22,660/ case the AO has rightly assessed an income of Rs.18,22,660/-. Since the appellant failed to substantiate appellant's claim and addition made by the llant failed to substantiate appellant's claim and addition made by the llant failed to substantiate appellant's claim and addition made by the Assessing Officer of Rs. 2,00,000/- is hereby confirmed. Assessing Officer of Rs. 2,00,000/

3.2 However, a careful perusal of the impugned order reveals that However, a careful perusal of the impugned order reveals that However, a careful perusal of the impugned order reveals that the Learned CIT(A), while proceeding ex parte, has not undertaken a the Learned CIT(A), while proceeding ex parte, has not under the Learned CIT(A), while proceeding ex parte, has not under meaningful adjudication of the issues on merits. The confirmation meaningful adjudication of the issues on merits. The confirmation meaningful adjudication of the issues on merits. The confirmation of addition is founded merely on absence of response from the of addition is founded merely on absence of response from the of addition is founded merely on absence of response from the assessee, without independent examination of the claim or assessee, without independent examination of the claim or assessee, without independent examination of the claim or evaluation of the material available on record. evaluation of the material available on record. It is a settled principle of law that the first appellate authority is under a principle of law that the first appellate authority is under a principle of law that the first appellate authority is under a statutory obligation to adjudicate the issues on merits, irrespective statutory obligation to adjudicate the issues on merits, irrespective statutory obligation to adjudicate the issues on merits, irrespective of whether the assessee appears or not. of whether the assessee appears or not. An order passed by the An order passed by the appellate authority cannot be sustained merely on account of non- appellate authority cannot be sustained merely on account appellate authority cannot be sustained merely on account prosecution. Even in the absence of the appellant, the authority is prosecution. Even in the absence of the appellant, the authority is prosecution. Even in the absence of the appellant, the authority is duty-bound to examine the assessment order, the grounds raised, bound to examine the assessment order, the grounds raised, bound to examine the assessment order, the grounds raised, and the material available on record, and to render a reasoned and the material available on record, and to render a reasoned and the material available on record, and to render a reasoned decision on merits. In the present case, the approach In the present case, the approach In the present case, the approach adopted by the Learned CIT(A) falls short of this mandate. The impugned order the Learned CIT(A) falls short of this mandate. The impugned order the Learned CIT(A) falls short of this mandate. The impugned order does not reflect any independent application of mind to the issues does not reflect any independent application of mind to the issues does not reflect any independent application of mind to the issues

ITA No. 1635/MUM/2026 ITA No. Afzal Abdul Khaliq Ahmed Afzal Abdul Khaliq Ahmed raised, particularly with respect to the assessee’s claim under raised, particularly with respect to the assessee’s claim under raised, particularly with respect to the assessee’s claim under section 80GGC of the Act and the nature of the section 80GGC of the Act and the nature of the impugned addition. impugned addition.

3.3 In view of the aforesaid facts and circumstances, and in the In view of the aforesaid facts and circumstances, and in the In view of the aforesaid facts and circumstances, and in the interest of substantial justice, we deem it appropriate to set aside interest of substantial justice, we deem it appropriate to set aside interest of substantial justice, we deem it appropriate to set aside the impugned order of the Learned CIT(A) and restore the matter to the impugned order of the Learned CIT(A) and restore the matter to the impugned order of the Learned CIT(A) and restore the matter to his file for fresh adjudication. his file for fresh adjudication. The Learned CIT(A) is directed to: Learned CIT(A) is directed to: (i) effective opportunity of being heard to the assessee; afford one more effective opportunity of being heard to the assessee; effective opportunity of being heard to the assessee; (ii) consider all submissions and evidences that may be furnished consider all submissions and evidences that may be furnished consider all submissions and evidences that may be furnished by the assessee; and by the assessee; and (iii) adjudicate the issues afresh on merits by adjudicate the issues afresh on merits by oned and speaking order in accordance with law. The passing a reasoned and speaking order in accordance with law. The oned and speaking order in accordance with law. The assessee is also directed to be diligent and extends full cooperation assessee is also directed to be diligent and extends full cooperation assessee is also directed to be diligent and extends full cooperation all requisite details and documentary evidence in support and files all requisite details and documentary evidence in support all requisite details and documentary evidence in support of its claims.

Order pronounced in the open Court on ounced in the open Court on 20/04/2026. /04/2026.

S Sd/- - Sd Sd/- (ANIKESH BANERJEE) (ANIKESH BANERJEE (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 20/04/2026 Aditi Pandare, Private Secretary

ITA No. 1635/MUM/2026 ITA No. Afzal Abdul Khaliq Ahmed Afzal Abdul Khaliq Ahmed Copy of the Order forwarded to forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy//

BY ORDER, BY ORDER,

(Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai