ITAT Mumbai Restores Appeal Dismissed for 117-Day Delay in ₹5.55 Crore Section 68 Case

The “B” Bench of the Income Tax Appellate Tribunal, Mumbai, delivered its order on 25 February 2026 in the case of Nam Technologies Private Limited for Assessment Year 2013–14. The appeal arose from dismissal by the National Faceless Appeal Centre on the ground of delay in filing the first appeal against reassessment and a major addition under Section 68 of the Income-tax Act.

CIT(A) Dismissal for Delay Without Merits Examination

The assessee’s appeal before the CIT(A) was rejected in limine due to a delay of 117 days, on the ground that sufficient cause for condonation was not shown. The company contended before the ITAT that the NFAC notice seeking explanation was not received in time and that the delay was due to non-availability of professional assistance and financial difficulties. The ITAT observed that the assessee had briefly explained the delay in the appeal form itself, but was denied an effective opportunity to support it through an affidavit or documents. Emphasising that substantial justice should prevail over technical lapses, the Tribunal held that the delay was not so excessive as to indicate lack of bona fides, especially considering the high-value addition involved.

Tribunal Orders Fresh Consideration by CIT(A)

The Tribunal set aside the CIT(A)’s order and remanded the matter for fresh adjudication. It directed the assessee to file a formal condonation petition supported by affidavit and evidence. The CIT(A) was instructed to first decide whether the delay deserves condonation in accordance with law and, if condoned, to adjudicate all grounds on merits after granting reasonable opportunity of hearing.

The appeal was allowed for statistical purposes.