SAINATH BUILDERS AND DEVELOPERS,MUMBAI vs. THE INCOME TAX OFFICER, MUMBAI

During the course of hearing, the Ld.AR submitted that while filing the appeal before the Ld.CIT(A), the assessee has admittedly stated that there was a delay in filing the appeal and has also explained the reasons which has led to delay in filing of the appeal. The Ld.CIT(A) without issuing any notice merely going through the above said explanation, has dismissed the appeal of the assessee holding that the assessee did not file any documentary evidences which prevented it from filing the appeal within the statutory time limit. It was submitted that no opportunity was provided to the assessee during the course of appellate proceedings to further explain the delay with necessary documentary evidence. Hence, the order has been passed in complete violation of principles of natural justice. It was further submitted that in similar circumstances, penalty levied by the AO u/s. 271F of the Act has been deleted by the Co-ordinate Benches of the Tribunal in assessee‟s own case and which the assessee also wishes to rely on before the Ld.CIT(A), however, due to lack of proper opportunity, the Ld.CIT(A) has dismissed the appeal of the assessee.

Per contra, the Ld.DR is heard, who has relied on the findings of the AO and it was submitted that it is the case where the assessee has failed to file the return of income u/s. 139(1) of the Act. Subsequently, in response to the notice u/s. 148 of the Act, the assessee has filed return of income declaring total income of Rs. 38,38,070/- and given that, the assessee has admittedly having taxable income, there is no reason for non- filing of the return of income u/s. 139(1) of the Act and, therefore, the AO after issuing show cause and calling for the necessary explanation has levied penalty u/s. 271F of the Act amounting to Rs. 5,000/-. Further, there was a delay in filing the appeal before the Ld.CIT(A) and considering the explanation of the assessee as not reasonable, the appeal of the assessee has been rightly dismissed by the Ld.CIT(A).

We have heard the rival contentions and perused the material available on record. Admittedly there is a considerable delay in filing the appeal by the assessee before the Ld.CIT(A), wherein the assessee has filed the appeal on 10-05-2025 as against the order u/s. 271F of the Act which was served on the assessee on 28-10-2023. At the same time, it is essential that before dismissing the appeal of the assessee, an opportunity must be provided to the assessee to explain the reasons for delayed filing of the appeal and to produce necessary documentary evidence in support of its explanation. However, in the instant case, it is evident from the impugned order that no notice had been issued to the assessee during the course of appellate proceedings. Therefore, we find that the assessee did not get the necessary opportunity to explain the reasons for the delay. In light of the same, we deem it appropriate to set aside the matter to the file of the Ld.CIT(A) to decide the same, including condonation of delay, afresh as per law, after providing reasonable opportunity to the assessee.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 30-04-2026