SHREE MAHALAXMI NAGARI SAHAKARI PATPEDHI LIMITED,AMBERNATH vs. INCOME TAX OFFICER, WARD 2(2), KALYAN

PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the separate orders of ld. CIT(A) / NFAC dated 17.02.2026 for Assessment Year (AY) 2015-16 in confirming the penalty levied under section 271(1)(c). 2. Rival submissions of both the parties have been heard and the record perused. The learned Authorised Representative (ld AR) of the assessee submits that the learned CIT(A) has dismissed the appeal by taking a view that there was a delay of 160 days in filing the appeal. In fact, the penalty order was not served upon the assessee. The assessee came to know about the penalty order when the assessee was resetting the password on the ITBA portal in the month of March 2025 with the help of their CA and found that

Shree Mahalaxmi Nagari Sahakari Patpedhi Limited ITA No. 3279/Mum/2026 (AY: 2015-16) there was certain demand against the assessee. The assessee has filed the affidavit of Sunil Hanamant Ghanawat. The learned AR of the assessee submits that the assessee has a good case on merits and is likely to succeed if their case is heard and decided on merits. 3. On the other hand, the learned Senior Departmental Representative (learned Senior DR) for the Revenue opposed the plea for condonation of delay. The learned Senior DR for the Revenue submits that a penalty of Rs. 3.36 crore was levied on the assessee on 09.09.2024. The assessee has not made compliance during the penalty proceedings despite service of various show- cause notices. The assessee is a habitual defaulter in not making timely compliance. The delay before the learned CIT(A) may not be condoned. The learned CIT(A), in para 6.2 of his order, has recorded that the assessee is regularly participating in the assessment proceedings for other years as well as in appellate proceedings. 4. In rejoinder submission, the learned AR of the assessee submits that the penalty order as well as the order of the learned CIT(A) are ex-parte orders. The lower authorities have passed the orders without allowing any opportunity to the assessee. The matter may be restored to the file of the learned CIT(A). The assessee is ready to bear some cost. 5. We have considered the rival submissions of both the parties and perused the orders of the lower authorities carefully. We find that the penalty order under Section 271(1)(c) was passed on 09.09.2024. However, the appeal before the learned CIT(A) was filed on 19.03.2025. The learned CIT(A) dismissed the 2

Shree Mahalaxmi Nagari Sahakari Patpedhi Limited ITA No. 3279/Mum/2026 (AY: 2015-16) appeal on the ground of delay. The assessee, in the statement of facts, has clearly mentioned that due to the wrong email ID mentioned on the Income Tax portal, the notices were not received. The assessee prayed for condonation of delay. We find that despite recording such fact, the learned CIT(A), instead of considering the fact sympathetically, dismissed the appeal in limine. We find that in the assessment order, addition of more than Rs. 8.00 crore was made despite the fact that the assessee was not vigilant in taking timely steps for rectifying or correcting the email address on the ITBA system. However, keeping in view the principle of natural justice, the delay in filing the appeal before the learned CIT(A) is condoned, subject to payment of a cost of Rs. 11,000/-, which is to be deposited in the Income Tax Miscellaneous Account. Considering the fact that we have condoned the delay, therefore, the matter is restored back to the file of the learned CIT(A) to decide the issue afresh. Needless to direct that the learned CIT(A) shall allow a fair and reasonable opportunity to the assessee. The grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purpose. Order was pronounced in the open Court on 24/09/2026. /- /- Sd/- /- Sd/- Sd/- OM PRAKASH KANT PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 24/09/2026 Biswajit

Shree Mahalaxmi Nagari Sahakari Patpedhi Limited ITA No. 3279/Mum/2026 (AY: 2015-16)

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