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IN THE INCOME TAX APPELLATE TRIBUNAL

“SMC” BENCH, MUMBAI

BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND

SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER

ITA No. 5843/MUM/2025 (AY: 2013-2014)

(Physical hearing)

Mirchandani & Company Private Assistant Commissioner of

Limited Vs Income Tax, Circle 5(2)(1),

Maharashtra 400026 Mumbai, Aayakar Bhavan,

[PAN: AAACM2811J] M.K. Road, Mumbai,

Maharashtra 400020

Appellant / Assessee Respondent / Revenue

Assessee by Shri Rajiv Khandelwal, CA

Revenue by Shri Usha Gaikwad - Sr. DR

Date of hearing 16.03.2026

Date of pronouncement 14.05.2026

Order under section 254(1) of Income Tax Act

PER PAWAN SINGH, JUDICIAL MEMBER:

1. This appeal by assessee is directed against the order of ld. CIT(A) dated

20.12.2024 for Assessment Year 2013-14. The assessee has raised

following grounds of appeal:

i. The Additional Commissioner of Income-tax (Appeals) (hereinafter referred to as

the Addl. CIT(A)) erred in upholding the action of the Assistant Commissioner of

Income-tax 5(2)(1), Mumbai (hereinafter referred to as the Assessing Officer) in

making a disallowance of a sum of Rs 21,13,919 on account of expenses incurred

for earning income which does not form part of the total income by invoking the

provisions of section 14A of the Act.

ii. The appellants contend that on the facts and in the circumstances of the case

and in law, the Addi CIT(A) ought not to have upheld the disallowance made by

the Assessing Officer of the impugned sum of Rs 21,13,919 as there is no

expenditure incurred in relation to earning income which does not form part of

the total income and as such, no disallowance ought to be made under section

14A.

2. Perusal of records shows that there is a delay of 207 days in filing appeal

before Tribunal. The assessee has filed an application for condonation of

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Mirchandani & Company Private Limited

delay which is supported with the affidavit of the assessee. The learned

authorised representative (ld. AR) of the assessee submits that delay in

filing appeal is not intentional or deliberate. The order passed by the ld.

CIT(A) on 20.12.2024 was sent on email ID “info@embros.in”. Perhaps

the email communication went to spam folder and remain unnoticed.

When completing the audit of current Assessment Year in September

2025, it was enquired about the status of order of appeal for AY 2013-14

pending before ld. CIT(A) and in enquiry of Income Tax Business Appeal

(ITBA) Portal and realise about the dismissal of appeal on 2012.2024. The

assessee immediately filed present appeal on 25.09.2025. The ld. AR of

the assessee submits that assessee has good case on merit and likely to

succeeding if her case considered on merit. The ld AR of the assessee

prayed for condoning the delay in filing appeal.

3. On the other hand, the learned Senior departmental representative (ld. Sr.

DR) of the Revenue submits that he left the issue of condonation of delay

on the discretion of the bench.

4. We have considered the submissions of both the parties and perused the

contents of application for condonation of delay which is supported by the

affidavit of assessee. Considering the overall facts and the material

available on record, we find that delay is not intentional rather the

assessee is interested in perusing appeal in merit. Thus, considering the

principle of law on limitation that when technical consideration and cause

of substantial justice are kept against each other, cause of substantial

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Mirchandani & Company Private Limited

justice may be prescribed. Hence, the delay in filing appeal before Triubnal

is condoned. Now adverting to the merit of the case.

5. Brief facts of the case are that assessee as company filed its return of

income for AY 2013-14 on 30.09.2013. This was selected for scrutiny,

during assessment the Assessing Officer noted that assessee has shown

investment of Rs. 4.41 crores and have earn dividend income of Rs.

16,710/-. The dividend income was claimed as exempt under section

10(34) of the Income