HOTEL RUDRA CONTINENTAL,UDHAM SINGH NAGAR V. XIT(A) NFAC, HALDWANI

ITA 237/DDN/2025

AI Insights

The case involves Hotel Rudra Continental appealing against the order of the Ld. CIT(A)-NFAC, which had dismissed their appeal in limine due to a delay of 26 months in filing. The delay was attributed to the negligence of the assessee's tax consultant, who failed to monitor the orders from the Ld. AO's Office. The tribunal, while noting the generality of the reasons provided for the delay, emphasized the importance of substantive justice over technicalities, referencing judicial precedents that support this view. The tribunal set aside the impugned order and remanded the case for fresh adjudication, imposing a cost on the assessee to discourage future delays.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836311 (ITAT-DEHRADUN)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 24-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMAR PAL SINGH
• Assessee Lawyers: S. K. MATTA
• Keywords: Condonation of delay; Set aside

Judgement Text

"ITA No. 237/DDN/2025 HOTEL RUDRA CONTINENTAL 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “DB”NEW DELHI BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER AND SHRISANJAY AWASTHI, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.237/DDN/2025 िनधा रणवष /Assessment Year:2017-18 HOTEL RUDRA CONTINENTAL, C/o Matta Garg & Co.Chartered Accountants, 15, Astely Hall,Dehradun. PAN No.AADFH6007K बनाम Vs. COMMISSIONER OF INCOME TAX (APPEALS),Circle 2(1)(1), Income Tax Office, Haldwani, UTTARAKHAND. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by Shri S.K. Matta, CA Revenue by Shri Amar Pal Singh, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 09.02.2026 उ\u000eोषणाक\bतारीख/Pronouncement on 11.02.2026 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereafter referred to as “the Act”), dated 14.10.2025, passed by Ld. CIT(A)-NFAC. 1.1 Right at the outset, it was pointed out by the Ld. AR that the delay of 26 months was not condoned by the Ld. CIT(A) and the appeal was dismissed in limine. It was averred by the Ld. AR that Item no.15 in Form 35 lists the reasons for delayed filing of the appeal before the Ld. CIT(A). It was mentioned by the Ld. AR that all tax matters of the assessee were being looked after by the tax consultant who was not vigilant enough about the orders issued from the Ld. AO’s Office. Thereafter, it was only when a penalty Printed from counselvise.com ITA No. 237/DDN/2025 HOTEL RUDRA CONTINENTAL 2 was imposed u/s 270A of the Act that the assessee was made aware of the assessment order and he took action promptly to file the first appeal. 1.2 The Ld. DR supported the action of the Ld. CIT(A) and stated that the reasons given for the delay are vague and generic. It was stated that in the absence of cogent reasons for delay the assessee should not be allowed to obtain any condonation of delay. 2. We have carefully considered the rival submissions and have gone through the records before us. We find that indeed the assessee has very generally blamed the tax consultant for the massive delay. We also find that no affidavit etc. has been filed at any stage. However, we are acutely aware of several judicial precedents that mandate substantive justice prevailing over technical issues. We are also aware that any condonation of delay in this matter could lead to repeat behavior by the assessee in future and thus, we deem it fit to impose a cost of Rs.2,000/- on the assessee, payable by 28.02.2026, to the Uttarakhand High Court Legal Services Committee located in the High Court Compound, Mallital, Nainital-263001 (UTTARAKHAND). 2.1 With this direction on costs, the impugned order is set aside and this case is remanded back to the file of Ld. CIT(A) for fresh adjudication. 3. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 11.02.2026 Sd/- Sd/- (YOGESH KUMAR US) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 11.02.2026 Printed from counselvise.com ITA No. 237/DDN/2025 HOTEL RUDRA CONTINENTAL 3 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "