Delay in Filing Appeal Cannot Override Principles of Natural Justice: ITAT Remands Matter to CIT(A)

ITAT held that even if there was a delay in filing the appeal, the taxpayer must still be given a fair chance to be heard, so the case was sent back to CIT(A) for a fresh decision.

The present appeal has been filed by Parul Nilesh Mehta against DCIT in the ITAT Mumbai, challenging an order passed by NFAC/CIT(A) dated October 28, 2025, for AY 2013-14.

The assessment was completed by the Assessing Officer under the Income Tax Act, and an amount of Rs. 21,250,000 was added to the assessee’s income under Section 69A. The reason for this addition was that the officer believed that the assessee could not explain the source of repayment of a loan taken during the year.

After this assessment, the assessee then approached an appeal before the CIT(A). However, the appeal was filed with a delay of 67 days. The CIT(A) dismissed the appeal due to delay and without considering the explanation provided by the assessee.

Being aggrieved with the CIT(A) decision, the tribunal then approached the tribunal. During the hearing, the AR explained that the delay happened because the CA handling the case was unwell and facing health issues. An affidavit explaining the reason for the delay had also been submitted earlier, but the CIT(A) did not properly consider it. The assessee further said that important legal grounds and additional evidence were filed, but the CIT(A) neither admitted them nor decided the case on its merits.

On the other hand, DR did not strongly object to sending the matter back to the CIT(A) for reconsideration. After reviewing the facts, the Tribunal observed that the CIT(A) had dismissed the appeal without properly considering the affidavit for delay condonation and without giving the assessee an opportunity for a hearing. Therefore, the tribunal felt that, in the interest of justice, the assessee should get another chance to present her case and submit evidence.

As a result, the tribunal set aside the CIT(A)’s order and sent the case back to decide the matter again according to law, after giving a proper opportunity to the assessee. The tribunal further directed the assessee to cooperate fully for the quick disposal of the case. Lastly, the tribunal allowed the assessee’s appeal for statistical purposes.