ALM INFOTECH CITY PVT LTD,DELHI V. INCOME TAX OFFICER, CIRCLE 10(1), DELHI, DELHI

ITA 7093/DEL/2025

AI Insights

The case involves ALM Infotech City Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre (NFAC) concerning the Assessment Year 2021-22. The appeal was initially delayed by 493 days due to significant operational disruptions faced by the company following the COVID-19 lockdown, including financial setbacks and staff resignations. The Tribunal considered the circumstances described in the condonation affidavit submitted by the company's director, Salman Akbar Jalaluddin, and decided to condone the delay and remand the case back to the CIT(A) for a fresh decision on merits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841035 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2021-2022
• Appeal Filed On: 05-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: JASPAL SINGH SETHI
• Keywords: Condonation of delay; Set aside
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, C: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.- 7093/Del/2025 [Assessment Year: 2021-22] ALM Infotech City Pvt. Ltd., B-418, New Friends Colony, New Delhi-110025. Vs Income Tax Officer, C.R. Building, Circle 10(1), Delhi-110001 PAN- AACCA4886B Assessee Revenue Assessee by Shri Jaspal Singh Sethi, Adv. Revenue by Shri Dayainder Singh Sidhu, CIT(DR) Date of Hearing 25.02.2026 Date of Pronouncement 25.02.2026 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal by the Assessee is directed against the order of National Faceless Appeal Centre (NFAC) [hereinafter referred to as the ‘Ld. CIT(A)] order dated 16.04.2024 arising out of the order dated 24.12.2022 passed under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as the ‘the Act’) by Printed from counselvise.com ITA No.- 7093/Del/2025 ALM Infotech City Pvt. Ltd. 2 the Assessment Unit, Income Tax Department, (hereinafter referred to as the ‘AO’) pertaining to Assessment Year (AY) 2021-22. 2. At the outset, the Ld. AR submitted that there is a delay of 493 days in filing the present appeal before the Tribunal. In this regard, the assessee filed an affidavit dated 23.02.2026 of Shri Salman Akbar Jalaluddin, Director explaining the reasons for the delay and requested to condone the delay along with an undertaking that the company shall comply with the time lines and the instructions of the Ld. CIT(A) as and when the matter has taken up for hearing by the Ld. CIT(A), if the matter is set aside by the Tribunal to the Ld. CIT(A). The condonation affidavit of the Director along with the undertaking, requesting for condonation of delay is reproduced as under: “ Affidavit 1. That I am director of the appellant company M/s ALM Infotech City Private Limited. 2. That on behalf of the company, I have filed the ITA No. 7093/Del/2025 before Hon'ble ITAT, Delhi for AY 2021-22 and thus I am conversant with the facts and circumstances of the case. I am competent to affirm and swear this affidavit. 3. The assessee company M/s. ALM Infotech City Pvt. Ltd. suffered major financial setback during the aftermath of Covid-19 lockdown. The financial repercussions resulted in resignation of most of the staff and non-cooperation from the directors of the company. Even the financial controller of the company handling the cases resigned and there was no one in the company to look into the legal proceedings. 4. That the director Mr. Salman Akbar Jalaluddin had to take care of all the pending work and everything had to be reorganized. It is also critical to mention that the series of events led to be belated filing of Income Tax returns in the form of updated returns for AY 2022-23, AY 2023-24 and AY 2024-25 which were filed for the end of December 2024. In the interim, the order as passed for AY 2021-22 on 16.04.2024 under appeal also got overlooked and it was only after stream lining of the tax returns, the management could focus on the pending appeal matters. Printed from counselvise.com ITA No.- 7093/Del/2025 ALM Infotech City Pvt. Ltd. 3 5. That it was only after the management could focus of the pending appeal matters, it was looking for an appropriate professional to take care of the filing of appeals and preparation thereof for the purposes of arguing the same. All these processes resulted in delay of 491 days in filing of appeal. The perusal of the above facts clearly states that there were extra ordinary circumstances in the working of the assessee company resulting in this inordinate delay. 6. That the delay in filing the present appeal is neither intentional nor deliberate but occurred due lack of information and circumstances beyond control. 7. That I respectfully state that there is a good and sufficient cause for condonation of the delay in filing this appeal. If the delay is not condoned, the company shall suffer irreparable loss and injury whereas no prejudice will be caused to the Revenue. 8. I state the contents of the present Affidavit are true and correct. Undertaking 1. Salman Akbar Jalaluddin, S/o. Mr. Alimuddin, aged about 33 years, R/o. B-418, New Friends Colony, New Delhi-110025, director of the appellant company M/s. ALM Infotech City Pvt. Ltd. Hereby provide this undertaking that: - 1. That on behalf of the company, I have filed the ITA No. 7093/Del/2025 before Hon'ble ITAT, Delhi for AY 2021-22 and have requested that the matter be remanded back to the Ld. CIT(Appeals) for a proper adjudication. 2. That it is assured that the company shall comply with the timelines and instructions of the CIT(Appeals) as and when the matter is taken up for hearing after being set- aside by the Hon'ble Bench and that no unnecessary delay shall be caused or any unnecessary adjournment shall be sought by the appellant. 3. That I shall ensure that all necessary cooperation shall be extended in bringing the appeal to be decided at the earliest. Verification: Verified at Delhi on this 23rd February, 2026 that the statements made hereinabove are true and correct to my knowledge and no part of it is false and nothing material has been concealed therefrom.” Printed from counselvise.com ITA No.- 7093/Del/2025 ALM Infotech City Pvt. Ltd. 4 2.1 Further, the Ld. AR submitted that the Ld. CIT(A) dismissed the appeal of the assessee by an ex-parte order. The Ld. AR further submitted that due to the facts stated in the condonation affidavit the assessee also could not appear before the Ld. CIT(A). The Ld. AR submitted that in view of these circumstances, one more opportunity may be given to the assessee to explain the facts before the Ld. CIT(A). 3. Per contra, the Ld. CIT(DR) relied upon the order of the authorities below and submitted for the dismissal of the assessee’s appeal. The ld. CIT(DR) submits that multiple opportunities were given to the assessee to file submissions but the assessee failed to furnish any submissions or file relevant documents in support of his claim made in grounds of appeal. 4. Both sides heard. Considering the facts as stated in the condonation application, we condone the delay in the filing of the appeal. Further, considering the facts of the case and in interest of justice, we deem it appropriate to grant one more opportunity to the assessee to make submissions before the First Appellate Authority. The Ld. CIT(A) shall grant reasonable opportunity of making submissions to the assessee and after considering the same and documents, if any, furnished by the assessee shall decide the appeal of assessee on merits, in accordance with law. Printed from counselvise.com ITA No.- 7093/Del/2025 ALM Infotech City Pvt. Ltd. 5 5. The assessee shall respond to the notice(s) served by the Ld. CIT(A), without fail. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 25th February, 2026. Sd/- Sd/- [VIKAS AWASTHY] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 27.02.2026. Pooja. Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi, Printed from counselvise.com "