ITAT Mumbai Condoned Delay and Restored Quantum and Penalty Appeals in Kishor Patil Case

The “E” Bench of the Income Tax Appellate Tribunal, Mumbai, in the case of Kishor Changya Patil (AY 2019–20), set aside the ex parte dismissal of both quantum and penalty appeals and restored them for fresh adjudication on merits.

CIT(A) Dismissed Appeals Solely on Limitation Grounds

The assessee had filed two appeals arising from reassessment proceedings under sections 147 and 144 of the Income-tax Act. One appeal related to additions made in the assessment order, while the other challenged penalty levied under section 271AAC(1). The Commissioner of Income Tax (Appeals), NFAC, dismissed both appeals in limine on the ground of delay in filing, without examining the substantive issues. The orders contained no discussion on the merits of the additions or penalty. Before the Tribunal, the assessee contended that the delay occurred due to bona fide circumstances beyond his control and was neither deliberate nor mala fide.

Tribunal Applies Liberal Approach to Condonation

The ITAT observed that settled law requires a liberal and justice-oriented approach while considering delay condonation applications. It noted that there was no indication of deliberate delay or any undue advantage gained by the assessee. Holding that substantial justice should prevail over technical considerations, the Tribunal condoned the delay. The impugned orders were set aside, and both matters were restored to the CIT(A) for fresh adjudication on merits after granting reasonable opportunity of hearing.

Both appeals were allowed for statistical purposes.