MR.SHAILENDRA KUMAR ,AGRA vs. ITO WARD 1(1)(2), AGRA
Facts
The assessee filed a return for AY 2016-17, and the case was reopened under section 147 due to substantial cash deposits. The Assessing Officer made an addition of Rs. 60,85,071, assessing total income at Rs. 64,59,640. The CIT(Appeals) dismissed the assessee's first appeal in limine due to a delay of 173 days.
Held
The Tribunal noted that the delay in filing the first appeal was due to the assessee's mother's serious illness and subsequent demise, and lack of professional assistance. Citing the principle of substantial justice, the Tribunal condoned the delay.
Key Issues
Whether the CIT(Appeals) was justified in dismissing the appeal in limine for delay without considering the genuine hardship faced by the assessee. The penalty order under section 271(1)(c) is consequential to the assessment order.
Sections Cited
250, 147, 144, 144B, 148, 143(2), 142(1), 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 228 & 229/Agr/2025 Assessment Year: 2016-17
Mr. Shailendra Kumar, 36, Vs. Income-tax Officer, Kasturi Vihar, Deori Road, Ward 1(1)(2), Agra. Agra-282001 (UP). PAN :AVAPK7804R (Appellant) (Respondent)
Assessee by Sh. Ankur Agarwal, C.A. Department by Sh. Shailendra Srivastava, Sr. DR
Date of hearing 13.10.2025 Date of pronouncement 30.10.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
Both these appeals have been preferred by the assessee against separate impugned orders both dated 04.03.2025 passed in Appeal No.
NFAC/2015-16/10193352 and NFAC/2015-16/10193351 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the
assessment year 2016-17, wherein the ld. CIT(Appeals) has dismissed assessee’s appeal, confirming the assessment order dated 31.03.2022 passed u/s. 147 r.w.s. 144 and 144B of the Act, upon rejection of
ITA No. 228 & 229/Agr/2025
assessee’s prayer for condonation of delay and also dismissed
assessee’s first appeal, affirming the penalty order dated 27.09.2022
passed u/s. 271(1)(c) of the Act, on the ground that quantum addition
made by Assessing Officer in the assessment order, stood confirmed by
ld. CIT(Appeals).
Since, the penalty order passed u/s. 271(1)(c) of the Act is
consequential to the assessment order, both these appeals are being
disposed of by the consolidated order for the sake of convenience and
brevity. The facts of ITA No. 228/Agr/2025 only are being narrated as
under.
ITA No. 228/Agr/2025:
Briefly stating, the facts are that the assessee e-filed his return of
income on 23.03.2017 for the year under consideration, declaring total
income at Rs.3,74,573/-. Based on the information available with the
department that the assessee had deposited Rs.60,85,071/- by way of
cash/NEFT/RTGS in various bank accounts maintained with Zila Sehkari
Bank Ltd. during F.Y. 2015-16, the case was reopened u/s. 147 of the Act.
Notice dated 30.03.2021 u/s. 148 of the Act was issued and served upon
the assessee. Assessee filed return of income on 14.04.2021 in response
thereof. Statutory notices u/s. 143(2) and 142(1) and show cause notice 2 | P a g e
ITA No. 228 & 229/Agr/2025
were issued, which remained un-responded on behalf of the assessee. Assessing Officer, therefore, completed the assessment proceedings and made and addition of Rs.60,85,071/- to the returned income of assessee, assessing total income at Rs.64,59,640/-.
Aggrieved, assessee preferred first appeal before learned CIT(Appeals), who dismissed the same in limine upon rejection of assessee’s prayer for condonation of delay caused in filing the first appeal.
This second appeal has been filed on the ground, in addition to others, that ld. CIT(Appeals) erred in dismissing the appeal in limine for delay of 173 days without considering the genuine hardship faced by the assessee due to serious illness and subsequent demise of his mother.
Perused the records. Heard learned representative for assessee and learned Sr. DR for revenue.
At the very outset, we note that the first appeal was filed on 20.10.2022 against the assessment order dated 31.03.2022 by a delay of about 173 days. It transpires from the perusal of impugned order that the assessee did neither mention the factum of delay in filing first appeal in form No. 35 nor moved any delay condonation application before ld.
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ITA No. 228 & 229/Agr/2025
CIT(Appeals). However, the appellant assessee has moved delay
condonation application along with death certificate of his mother before
this Tribunal. The cause for the delay has been shown to be serious
ailment of assessee’s mother and her subsequent demise on 11.01.2023
coupled with lack of professional assistance in filing the first appeal.
It is well established principle of law that the substantial justice
cannot be denied on technical aberrations. In an adversial justice system
like ours, no party should ordinarily be denied the opportunity of
participating in the process of justice dispensation. Justice is the goal of
jurisprudence. Any interpretation which eludes or frustrates the recipient
of justice, is not to be followed. The object of prescribing certain time
period for filing an appeal is to expedite the proceedings before the
concerned authorities and to advance the cause of justice. In the facts
and circumstances of the case, we find the cause of delay sufficient and
condone the delay caused in filing first appeal before the ld. CIT(Appeals).
In the aforesaid circumstances, we deem it just and appropriate to
remit the matter back to the file of learned CIT(A) for adjudication afresh
on merits after affording an opportunity of hearing to the assessee. The ld.
CIT(Appeals) is directed to pass speaking and reasoned order. The
assessee is also directed to be cooperative in attending the hearings and
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ITA No. 228 & 229/Agr/2025
making submissions before the learned CIT(A) for the expeditious and
effective disposal. Needless to say, that learned CIT(A) shall ensure the
observance of the principles of natural justice. The appeal is, thus, liable
to be allowed for statistical purposes.
ITA No. 229/Agr/2025:
Since the issue relating to the quantum addition has been remanded
back to the file of the learned CIT(Appeals) for fresh adjudication on
merits, and as the present appeal pertains to the penalty imposed under
section 271(1)(c) of the Act, which is consequential to the said quantum
addition, we consider it appropriate to remit this penalty matter also to the
file of the learned CIT(Appeals) for adjudication afresh in accordance with
law. Accordingly, this appeal is also liable to be allowed for statistical
purposes.
In the result, both the appeals ITA No. 228/Agr/2025 and ITA No.
229/Agr/2025 are allowed for statistical purposes.
Order pronounced in the open court on 30.10.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30.10.2025 *aks/-
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