PRIYA NISHANT SHETH,SURAT vs. N SAIRAJ, ASST.DIRECTOR OF INCOME TAX, KARNATAKA

ITA 532/SRT/2026Status: DisposedITAT Surat25 June 2026AY 2020-214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before the CIT(A) in the interest of justice, noting that the assessee was not given an opportunity to be heard regarding the delay. The matter was remanded back to the CIT(A) to decide the appeal on its merits.

What were the facts?

The assessee, a partner in a firm, reported profit from the firm which was claimed as exempt under Section 10(2A). However, the Assessing Officer treated this profit as taxable business income in the intimation under Section 143(1). The assessee's appeal before the CIT(A) was dismissed due to a significant delay.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) should be condoned and whether the CIT(A) erred in dismissing the appeal without granting an opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 10(2A),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Ms. Parul Meghani, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 09.06.2026Pronounced: 25.06.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), ADDL/JCIT(A) [in short “CIT(A)”], Guwahati dated 16.02.2026 for the Assessment Year (in short “AY”) 2020-21. 2. The assessee has raised the following grounds of appeal:

“1. That on the facts and in the circumstances of the case and in law, the Learned ADIT has grossly erred in treating the profit of Rs.15,91,475/- received from the partnership firm, which is specifically exempt u/s 10(2A) of the Income-tax Act, 1961, as taxable business income of the appellant and wrongly adding the same under the head "Profits and Gains of Business or Profession (PGBP)".

The order continues below.

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