SUPREME ALLIED SERVICES PRIVATE LIMITED ,BORIVALI MUMBAI vs. ASST COMMISSIONER OF INCOME TAX CIRCLE 13 2 2 MUMBAI , MUMBAI

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ITA 7618/MUM/2025Status: HeardITAT Mumbai07 October 2026AY 2018-1912 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the reasons adduced by the assessee for the delay of 667 days were flimsy and superficial, and did not constitute a "sufficient cause" for condonation. The Tribunal found the assessee's negligence to be palpable, noting that as a company, it was expected to follow up on income tax proceedings. The Tribunal extensively referred to various Supreme Court judgments, including Basawraj and another vs. Special Land Acquisition Officer, Perumon Bhagvathy Devaswom, Perinadu village v. Bhargavi Amma, Balwant Singh (Dead) v. Jagdish Singh, Shiv Dass v. Union of India, and Ramlal vs. Rewa Coalfields Ltd., to emphasize that delay should not be condoned merely out of generosity or sympathy. The Tribunal stressed that the law of limitation is a substantive law, and a valuable right accrues to the other party due to the failure of the applicant to explain the delay with sufficient cause. The assessee failed to demonstrate reasonable grounds for the delay and was found to have neglected to assert its rights in a timely manner. Consequently, the appeal was dismissed in limine as not maintainable.

What were the facts?

The assessee, Supreme Allied Services Private Limited, filed an appeal before the Income-Tax Appellate Tribunal (ITAT) against an order dated 20.11.2023 passed by the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi, which pertained to a rectification order under Section 154 of the Income-tax Act, 1961, for Assessment Year 2018-19. The appeal was filed on 17.11.2025, which was delayed by 667 days from the last date of filing, 20.01.2024. The assessee attributed the delay to the appellate order email landing in the spam folder, leading to non-communication to the tax consultant. The assessee became aware of the situation upon receiving a demand notice under Section 156 of the Act on 18.09.2025.

What were the issues?

1. Whether the delay of 667 days in filing the appeal can be condoned on the grounds stated by the assessee, considering the provisions of Section 5 of the Limitation Act and the principles laid down by various judicial pronouncements regarding "sufficient cause". Assessee's Contention: The assessee argued that the delay was due to unforeseen circumstances beyond their control, specifically the email notification of the appellate order being delivered to the spam folder, which prevented timely communication to their tax consultant. They relied on Supreme Court decisions in Improvement Trust vs. Ujagar Singh, Collector, Land Acquisition Vs. Katiji, and Vasu & Co. Vs. State of Kerala to support their plea for condonation. Revenue's Contention: The judgment does not explicitly record the revenue's arguments on the condonation of delay. However, the Tribunal's findings indicate that the revenue likely opposed the condonation, as the Tribunal ultimately dismissed the appeal on this ground.

Which sections of the Income-tax Act were involved?

Section 154,Section 250,Section 156,Section 5

AI-generated summary — verify with the full judgment below

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI PRABHASH SHANKAR

For Appellant: Shri Jitendra Singh a/w Ms. Shivali Mhatre, ARs
For Respondent: Shri Basavaraj Hiremath,CIT DR a/w, Shri Rajgopal Parthasarthy, Sr. DR
Hearing: 23.09.2026Pronounced: 07.10.2026

आदेश की प्रतितलति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai

P a g e | 12 ITA No. 7618/Mum/2025 A.Y. 2018-19 Supreme Allied Services Private Limited 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER,

उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीय अतिकरण/ ITAT, Bench, Mumbai.

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