SEEMA SETHI,MUMBAI vs. INCOME TAX OFFICER WARD 33(1)(9), MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER:

dated 12.11.2025 for assessment year (A.Y.) 2017-18. Though the assessee

has raised multiple grounds of appeal, however, the substantial grounds of

appeal relate to passing assessment order as well as CIT(A) order in ex-

parte and without allowing fair and reasonable opportunity.

The Ld. Authorized Representative (in short ‘AR’) of the assessee submits

that the assessment for AY-2017-18 was completed on 09.12.2019 under

Section 144. The assessee was out of India during the period when the case

of assessee was allegedly taken up for assessment. The assessee was out of

India from June 2019 till 13.12.2019 in the mean time assessment order was passed on 09.12.2019. Due of absence of assessee, no notice could be

served upon the assessee. The assessee left for UAE with her husband who

was employed in Dubai.The assessee realized about passing of assessment

order only when her bank account was attached. The assessee immediately

approached the AO and came to know about passing of the assessment

order and file appeal before Ld. CIT(A) on 18.03.2021. The ld CIT(A)

dismissed the appeal of assessee by holding that there was delay in filing

such appeal. The Ld. AR of the assessee submits that substantial period of

alleged delay is covered by COVID Pandemic, wherein the Hon’ble Apex

Court has already condoned the delay in taking recourse of law from March

2020 till 28.02.2022 and further 90 days’ grace period was allowed in Suo

Motu Writ Petition No. 3 of 2020. The Ld. CIT(A) not condoned the delay

and dismissed the appeal as unadmitted. The Ld. AR submitted that the

assessee has good case on merit and likely to succeed if one more

opportunity is given to contest the case on merit. The matter may be

restored back to the file of AO. In support of his contentions, the Ld. AR

submits that various correspondences with AO by way of e-mail and copy of

Passport of assessee, is also placed on record.

account of certain credits in two bank accounts of assessee. There is no

unaccounted credit in the bank account of assessee. He undertakes on

behalf of assessee to be more vigilant in making timely compliance and to

explain the credit in the bank account of assessee.

various documents and evidences and the copy of the Passport of assessee

were submitted in case the Benchis of the view that delay in filing

appealbefore Ld. CIT(A) is to be condoned, the matter may be restored to

the file of Ld. CIT(A) for adjudication on merit. The assessee may be

directed to make timely compliance before ld CIT(A).

through the orders of lower authorities carefully. Firstly, we are considering

the plea of ld AR for condoning delay in filing appeal before ld CIT(A). We

find that the assessment was completed under Section 144 on 09.12.2019.

The assessee filed appeal before Ld. CIT(A) on 18.03.2021. The appeal of

assessee was dismissed without condoning the delay despite the fact that

the assessee in her statement of fact has explained the circumstances that

the assessee was not in India during the relevant period. On overall

considering the fact that the assessee was not India and notice was not

served on the assessee and now, she is interested in pursuing her case on

merit, we find that delay in filing first appeal before ld CIT(A) is not

intentional which has been explained before us, hence, delay in filing appeal

before Ld. CIT(A) is condoned. Now adverting on merit of the case.

made addition in the assessment order on account of unexplained credit in

two bank accounts of assessee. The Ld. CIT(A) dismissed the appeal in

limine and not condoning the delay in filing appeal. Thus, keeping in view

the Principles of Natural Justice, the matter is restored back to the file of AO to pass the assessment order afresh. The prayer of ld Sr DR for revenue to

restore to ld CIT(A) is not acceptable to us, as assessment was completed

under section 144 and in the event of filing evidence to substantiate credits

in the bank account, such evidence may require verification by AO. Thus, to

avoid long drawn process of remand report, the matter is restored to the file

of AO. Needles to direct that before passing the order, the AO shall allow fair

and reasonable opportunity to the assessee. The assessee is also directed to

be more vigilant in future in making timely compliance. In the result, the

grounds of appeal raised by the assessee are allowed for statistical purpose.

Order was pronounced on 04/06/2026 in open Court.

Sd/- Sd/- MAKARAND VASANT MAHADEOKAR PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

MUMBAI, Dated: 04/06/2026 Z.U., P.S

Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai

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