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ITA No.7748/MUM/2025/AY 2016-17

Vishan Satramdas Lakhani

accounts and mentioning any alternate application of cash by the

Appellant.”

3. Facts of the case in brief are that the assessee filed his return of income

for the AY 2016-17 on 13.10.2016 declaring total income at Rs.13,54,910/-. The

case was reopened and notice u/s 148 was issued on 31.03.2021. After hearing

the assessee, order u/s 147 rws 144 rws 144B was passed on 29.03.2023 by

making additions of Rs.84,89,600/- and Rs.14,25,000/- u/s 68 and 69A of the Act

respectively. Aggrieved by the order of AO, the assessee filed appeal before the

CIT(A). There was delay of 128 days in filing the appeal before the CIT(A). The

appellant had submitted that he did not receive any email or intimation for

passing the assessment order. Only after receiving the notice u/s 271(1)(c) on

21.08.2023, the appellant could find the impugned assessment order and

thereafter, he filed the appeal before the CIT(A) which was late by 95 days. The

appellant had relied on the decision of Hon’ble Supreme Court in case of

Collector, Land Acquisition vs. Mst. Katiji & Ors. 167 ITR 471 (SC) and other

decisions and requested for condonation of delay. The reasons given by the

assessee was not considered “sufficient cause” for condoning the delay of 95

days. Hence, the CIT(A) held the appeal as not maintainable and dismissed it.

4. Aggrieved by the order of CIT(A), the assessee filed appeal before the

Tribunal. The Ld. AR of the appellant submitted that the delay was very short of

95 days only and it occurred due to bona fide and reasonable cause beyond the

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ITA No.7748/MUM/2025/AY 2016-17

Vishan Satramdas Lakhani

control of the assessee. The CIT(A) should have considered the reasons given by

the assessee sympathetically in the interest of justice and should have decided

the appeal on merit. The assessment order was ex parte and the assessee did not

receive any email or intimation regarding the assessment order. Only after

receiving the show cause notice u/s 271(1)(c) of the Act, assessee found that the

assessment order has already been passed and he filed the appeal which was

delayed by 95 days. He relied on the decision of Hon’ble Supreme Court in case

of Mst. Katiji & Ors. (supra) and Gupta Builders and Developers vs. ACIT in ITA

No.4361/Mum/2025 dated 03.09.2025 where the delay of 183 days was

condoned by the ITAT. Hence, he requested to condone the delay.

5. On the other hand, the Ld. Sr. DR of the revenue supported the order of

CIT(A).

6. We have heard both parties and perused the materials on record. We have

also carefully gone through the decision relied by the appellant. The contention

of the appellant is that he did not receive the email and communication from the

AO due to which an ex parte order was passed. After receiving the show cause

notice u/s 271(1)(c) of the Act, the assessee filed the appeal which was delayed

by 95 days. We are of the view that the delay was not deliberate and intentional.

There was sufficient cause for the delay in filing the appeal before the CIT(A).

Therefore, following the decision of the Hon’ble Supreme Court in case of Mst.

Katiji & Ors. (supra), we direct the CIT(A) to condone the delay of filing the appeal

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ITA No.7748/MUM/2025/AY 2016-17

Vishan Satramdas Lakhani

before him. Accordingly, the order of CIT(A) is set aside and he is directed to

decide the appeal on merit after granting adequate and reasonable opportunity

of being heard to the assessee. The assessee is directed to be vigilant and submit

explanation and details as required by the CIT(A). Accordingly, Ground No.1 is

allowed for statistical purpose.

7. Since we have set aside the order of CIT(A) and restored the matter back

to his file on fresh adjudication, the other grounds become academic in nature

and do not need adjudication.

8. In the result, the appeal of the assessee is allowed for statistical purpose.

Order is pronounced on 26.02.2026.

Sd/- Sd/-

(SANDEEP GOSAIN) (BIJYANANDA PRUSETH)

JUDICIAL MEMBER ACCOUNTANT MEMBER

*Anike