ITAT Gives Taxpayer Another Chance, Orders Fresh Assessment After Condoning Delay:

The Income Tax Appellate Tribunal (ITAT), Patna ‘SMC’ Bench, has granted another chance to Bibi Sahjadi Bano, a taxpayer from Purnea, Bihar to present her case by overlooking the delay in filing her appeal. The Tribunal has directed the Assessing Officer to give the taxpayer an opportunity of being heard before passing a fresh order and remitted the matter back for fresh assessment.

The case arises out of an order of assessment dated 31.01.2024 passed under Sections 147, 144 and 144B of the Income Tax Act, 1961, whereby the Assessing Officer made certain additions to the income of the taxpayer. Bano had challenged the assessment before the Commissioner of Income Tax (Appeals) but the appeal was dismissed on January 30, 2026 as it was filed late.

The taxpayer filed the first appeal with a delay of 108 days. In her statement, she said she was an old, illiterate woman who did not know anything about computers or online tax procedures. She also said the email address and mobile number registered on the income tax portal belonged to Manish Kumar, owner of an internet café. As a result, she did not receive or notice important communications, including notices issued by the Assessing Officer. She also cited severe back pain, high blood sugar and blood pressure as difficulties affecting her ability to handle the proceedings.

The taxpayer subsequently filed an appeal before the ITAT with a delay of 125 days. She explained that the earlier appellate order had been passed online and escaped her attention. She learned about the matter only after her son checked an email containing a tax demand notice. She then approached a tax professional and took steps to file the appeal.

The Tribunal accepted the explanation for the 125-day delay in approaching the ITAT and condoned it. Although the taxpayer did not appear for the hearing, the Bench decided to examine the matter after hearing the Departmental Representative and reviewing the available records.

The Tribunal observed that an appeal should ordinarily be filed within the prescribed time. However, where the delay is supported by a genuine reason beyond the taxpayer’s control, it may be treated as a sufficient cause for condonation. Referring to the Supreme Court’s decision in Collector, Land Acquisition v. Mst. Katiji & Others (1987), the Bench reiterated that delays supported by justifiable reasons should be considered liberally to ensure substantial justice.

Finding merit in the taxpayer’s explanation, the ITAT condoned the 108-day delay in filing the first appeal before the CIT(A). It remanded the matter to the Assessing Officer for a fresh assessment, known as a de novo assessment. The Assessing Officer has been directed to give the taxpayer a proper opportunity to be heard before passing a fresh assessment order.

Accordingly, the appeal was partly allowed for statistical purposes.