MUKHTA JIVAN SOCIETY,ANDHERI WEST vs. INCOME TAX OFFICER EXEMPTION WARD 2 1 MUMBAI, MUMBAI

ITA 122/MUM/2026Status: DisposedITAT Mumbai06 May 2026AY 2018-195 pages

AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, subject to a deposit. However, due to ineffective compliance before the lower appellate authority and the need for proper adjudication of the donation issue, the case was remanded for fresh decision.

What were the facts?

The assessee, a charitable trust, filed an appeal with a significant delay of 402 days. The delay was attributed to changes in personnel, technical issues with email, and the impact of the COVID-19 pandemic on operations. The original assessment order included an addition for donations where details could not be provided.

What were the issues?

Whether the delay in filing the appeal should be condoned, and whether the case warrants a fresh adjudication on merits due to procedural issues and the need for proper examination of donation details.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLE SHRI NARENDER KUMAR CHOUDHRY & HON’BLE SHRI JAGADISH

For Respondent: Shri Saurabh Raskar, Sr. DR

Pronounced: 06.05.2026

आदेश / ORDER

PER NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER: This appeal has been preferred by the Assessee against the order dated 13.09.2024, impugned herein, passed by the National Faceless Appeal Centre (NFAC)/Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2018-19.

At the outset, it is observed that there is a delay of 402 days in filing of instant appeal, on which the Assessee has claimed as under:-

“The Trust prays for indulgence of this Hon'ble Tribunal in condoning the delay in filing appeal for A.Y. 2018-19. It is humbly submitted that the Trust is dedicated to charity, with its primary objective being providing medical relief to and rehabilitation of persons (and their families) suffering from leprosy, AIDS, TB etc. The Trust also extends its medical infrastructure and expertise to help persons afflicted with other ailments, especially women and children belonging to the tribal/weaker sections of the society. The Trust also conducts Children's homes for the under- privileged, homes for the aged persons and operates dispensaries. The Trust is committed to charity and service to the society.

It is submitted that the genuineness of the Trust's charitable activities is undisputed; it is not the case even of the Assessing Authority/ CIT(A) that the Trust is not genuinely into charitable activities and/or the activities are doubtful in any manner. The donations received by the Trust are genuine and authentic. Hence it is prayed that an otherwise meritorious case may not be declined relief on technical grounds. There is a delay of 401 days in filing the appeal. It is submitted that nowhere in the earlier and/or subsequent assessments, has the Trust faced any addition/disallowance vis-à-vis donations and nowhere has the Trust delayed even filing of returns/tax audit reports.

The reasons for the delay are stated in the Affidavits filed by the trustee Ms. Anne Fernandes and the Ld. CA Shri Deepak Karanth and the same are relied upon, in support of the Trust's prayers. In view of the same, it is prayed that the delay may be kindly be condoned”.

The Assessee in support of aforesaid contention also filed duly sworn affidavit of its chartered accountant namely Shri Deepak Karanth, which read as under:-

“1. I am handling the tax affairs of my client Mukhta Jivan Society which is a charitable Trust and is entitled for exemption u/s. 11 of the Income tax Act. The Trust is involved in charitable activities like providing medical relief to patients suffering from leprosy / AIDS, TB and other ailments to the needy/under privileged & weaker sections of the society. The Society also conducts Children's homes, homes for the aged, dispensaries and rehabilitation programmes for persons affected by serious ailments and their families. The principal sources of income are from donations from well wishers, income from investments dispensary collections etc. 2. The return of the Trust for A.Y. 2018-19 was taken up for scrutiny and during the course of the assessment proceedings the Ld. AO had called for details of donations received. The period covered by the scrutiny proceedings was covid period when a lockdown was in force wherein there were restrictions on the movement of persons and the normal working of the offices was adversely affected. 3. During the course of the assessment proceedings, the Appellant assessee provided as much details as possible, under the prevailing circumstances. The Trust was in receipt of total donations of Rs. 2,14,64,562/. The entire details of local donations could not be provided before the completion of the assessment, due to the covid restrictions on staff/personnel, faced by the client as well as by my office. The assessment of the Trust Mukhta Jivan Society, for A.Y. 2018-19 was completed and an order u/s. 143(3) was passed by the Ld. AO on 15th March 2021. The Ld. AO made addition towards such donations (Rs. 83,20,635/-) whose details could not be provided by the assessee and accepted the balance donations as genuine. 4. The Trust carried the assessment in appeal before the Commissioner (Appeals). The order of the Ld. CIT (Appeals NFAC) was passed on 13th September 2024. It is noted from the order of the Ld. CIT(A) that notices for hearing/filing submissions were issued via e-mail, on various dates. I say & state that the appeal was filed in May 2021 but by the time the notices were issued by the Ld. CIT(A), there was a change in the personnel at the Trust, who was looking after the tax matters. 5. I further say that my email ids were & are still facing some technical issues; some mails are automatically getting diverted to 'Spam'. Further one of my mail ids namely 'deepaks.karanth@gmail.com is not operational viz. even if someone sends a mail on that id, it may not bounce off (so the sender is unaware that the recipient has not received) but I do not receive the same. Unfortunately, this mail id has been mentioned/stated for communication in many a matters. 6. In view of the above issue(s), I say that it is possible that the notices/order of the Ld. CIT(A-NFAC) were served upon the Trust and the person in charge (earlier or at present) may have forwarded the mails to me but I remained unaware of the same. I say that owing to the above, the notices/order were not noticed until I noticed the order on the portal and then it was realized that the appeal has already been disposed off by the Ld. CIT(A). I say that the assessee trust, thereafter, immediately took steps to send the papers to its consultant/Advocate for drafting the appeal. 7. I say & submit that in none of the subsequent assessments, has the Trust faced any addition/disallowance vis-à-vis donations and no where has the Trust delayed even filing of returns/tax audit reports. 8. In view of the above, it is prayed that this Hon'ble Tribunal may kindly be pleased to condone the delay of 401 days in filing the appeal and oblige.”

On the contrary, the ld. D.R. refuted the claim of the Assessee with regard to the condonation of delay.

Heard the parties on the point of limitation. Considering the reasons stated by the Assessee for condonation of delay, which are otherwise supported with duly sworn affidavit of Sister Anne Fernandes dated 29.12.2025 and Shri Deepak Sadashiv Karanth the ld. Chartered Accountant as genuine, bona-fide and unintentional, the delay is condoned however, subject to deposit of Rs.11,000/- in the Revenue Department under ‘other heads’ within 15 days from the date of this order.

Coming to the merits of the case, it is observed that though, the Assessee before the ld. Commissioner filed first appeal, challenging the assessment order dated 15.03.2021 under Section 143(3) r.w.s. 143(3A) and (3B) of the Act and the addition of Rs.83,20,635/- made by such assessment order, however, despite affording various opportunities, the Assessee made no compliance and therefore, in the constrained circumstances, the ld. Commissioner dismissed the appeal of the Assessee affirming the aforesaid assessment order and the addition involved.

We have given thoughtful consideration to the peculiar facts and circumstances of the case. No doubt, the Assessee made ineffective compliance however, it is a fact that the assessment proceedings, more or less, have been carried out during the Covid-19 period, which resulted into passing the assessment order dated 15.03.2021 that is too, during the Covid-19 period, when the entire nation was on hold and it is also a fact that in the absence of relevant submissions and documents, the issue involved also remains to be adjudicated in its right perspective and proper manner. Thus, considering the peculiar facts and circumstances in totality, as observed above, for just and proper decision of the case and substantial justice, we deem it appropriate to remand the instant case to the file of the ld. Commissioner for decision afresh. Thus, the case is accordingly remanded to the file of the ld. Commissioner for decision afresh, suffice it to say, by affording reasonable opportunity of being heard to the Assessee.

We clarify that in case of subsequent default, the Assessee shall not be entitled to any leniency.

In the result, Assessee’s appeal is allowed for statistical purposes.

Order pronounced in the open court on 06.05.2026. Sd/- Sd/- JAGADISH NARENDER KUMAR CHOUDHRY ACCOUNTANT MEMBER JUDICIAL MEMBER (Tarun Kushwaha) Sr. Private Secretary Copy to: MUKHTA JIVAN SOCIETY, SOCIETY OF HELPERS OF MARY SHRADDHA VIHAR VEERA DESAI 1 ROAD ANDHERI WEST MUMBAI, MUMBAI-400058, MAHARASHTRA INCOME TAX OFFICER EXEMPTION WARD 2 1 MUMBAI, 6TH FLOOR, MTNL TEL. EX. 2 BUILDING, CUMBALLA HILLS, PEDDER ROAD, MUMBAI- 400026, MUMBAI-400016, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE TRUE COPY

ASSISTANT REGISTRAR / SR. PRIVATE SECRETARY I.T.A.T., MUMBAI

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