ITAT Mumbai Condones 150-Day Delay and Remands Additions Under Sections 43CA and 68 for Fresh Adjudication
Court / Authority
Income Tax Tribunal
Update / Judgement Date
25 Aug 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
2 min read
View Count
2
Key Facts and Tribunal Findings
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, allowed the appeal of Hameeclass Builders for Assessment Year 2017–18 for statistical purposes, condoning a delay of 150 days and remanding the matter to the Assessing Officer for fresh adjudication.
The delay in filing the appeal was attributed to exceptional circumstances, including the death of a key partner managing tax compliance, serious medical issues of another partner, and lapses by consultants who failed to respond to notices or communicate developments. The Tribunal accepted the explanation, holding that sufficient cause was established in line with the principles laid down by the Supreme Court in Collector Land Acquisition v. MST Katiji, and condoned the delay.
On merits, the assessment had been completed under Sections 147 read with 144 and 144B on a best judgment basis due to non-compliance. The Assessing Officer made multiple additions, including ₹59.37 lakh under Section 43CA, ₹56 lakh under Section 68 towards capital introduced by partners, and ad-hoc disallowance of business expenses.
The Tribunal noted that neither during assessment nor appellate proceedings were relevant documents and explanations furnished, resulting in ex parte adjudication by the CIT(A).
Considering that the assessee subsequently produced supporting documents before the Tribunal, which were not examined by lower authorities, the Tribunal held that principles of natural justice warranted granting one more opportunity.
Accordingly, the Tribunal set aside the orders of lower authorities and restored the entire matter to the Assessing Officer for de novo adjudication after providing adequate opportunity of hearing. All issues were left open, and the appeal was allowed for statistical purposes.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about Income Tax Tribunal
- What is the Income Tax Appellate Tribunal (ITAT)?
- The ITAT, set up in 1941, is the second appellate authority in direct tax matters and the final fact-finding body. It hears appeals against orders of the Commissioner (Appeals) and certain other authorities, through benches across India.
- What is the time limit to file an appeal before the ITAT?
- An appeal must be filed within two months from the end of the month in which the order is communicated. This rule has applied since 1 October 2024 and continues under the Income-tax Act, 2025. The Tribunal can condone delay for sufficient cause.
- Can the ITAT stay a tax demand?
- Yes. The Tribunal can stay recovery of a disputed demand while an appeal is pending, usually on deposit of a part of the demand or furnishing security. Stays are granted for a limited period, and the appeal is expected to be decided within it.
- Where does an appeal go after the ITAT?
- An appeal against an ITAT order lies to the High Court, but only on a substantial question of law. A further appeal lies to the Supreme Court.
- How can White Collar Professional help with a ITAT matter?
- Post your requirement on White Collar Professional to receive proposals from verified Chartered Accountants and tax Advocates, compare them, and pay securely through the platform. This page also tracks the latest ITAT ITAT orders as they are reported.
