ZAVERBEN DHANJI GALA (LEGAL HEIR OF DHANJI GHELLABHAI GALA),MUMBAI vs. INCOME TAX OFFICER –WARD 20(3)(1), MUMBAI, MUMBAI

Facts

The assessee, Mr. Dhanji Ghellabhai Gala, engaged in real estate development, filed a Return of Income for AY 2022-23 declaring Nil income. The Assessing Officer (AO) made additions on account of Short Term Capital Gain, disallowance under Section 40(a)(ia), and unverified creditors as unexplained cash credit. The assessee's appeal before the National Faceless Appeals Centre (NFAC), Delhi (CIT(A)), was dismissed on 18.12.2025 due to non-response to notices issued between 01.05.2024 and 24.11.2025. Mr. Gala expired on 24.06.2024. The present appeal is filed by his legal heir, Zaverben Dhanji Gala, challenging the CIT(A)'s order. There was a delay of 60 days in filing this appeal before the ITAT.

Held

The Tribunal condoned the delay of 60 days in filing the appeal. It found that the notices issued by the CIT(A) were subsequent to the death of the assessee, Mr. Dhanji Ghellabhai Gala, making it plausible that the appeal remained unattended by the legal heirs. Therefore, sufficient cause was made out for condonation. The Tribunal also noted that the appeal was not decided on merits by the CIT(A), presumably due to non-appearance. In the interest of justice, one opportunity was granted to the appellant to prosecute the appeal. The impugned order of the CIT(A) was set aside, and the appeal was restored to the file of the CIT(A) for disposal on its own merits and according to law. The appellant was directed to cooperate for appropriate disposal, and an adequate opportunity of being heard would be afforded. No issue was expressly left undecided.

Key Issues

1. Whether the delay of 60 days in filing the appeal before the ITAT should be condoned, considering the death of the assessee and the alleged lack of awareness by the legal heirs. Assessee's Contention: The delay occurred because the tax and legal proceedings remained unattended after the death of Mr. Dhanji Ghellabhai Gala on 24.06.2024, as the legal heirs were unaware of the matter. An affidavit was filed seeking condonation. Revenue's Contention: No specific contention is recorded in the judgment regarding the delay. 2. Whether the appeal should be decided on merits by the CIT(A) rather than being dismissed for non-appearance. Assessee's Contention: The assessee implicitly argues for an opportunity to be heard on merits, as the CIT(A) dismissed the appeal due to non-appearance. Revenue's Contention: No specific contention is recorded in the judgment regarding the merits of the appeal.