MRS. SUNITA VIJAY,DELHI V. ITO WARD-44(1), DELHI

ITA 1403/DEL/2025

AI Insights

The case involves Mrs. Sunita Vijay, who appealed against the orders of the CIT(A) and the AO concerning the assessment year 2017-18. The AO had made an addition of Rs.1,15,06,952 to the assessee's income, citing unaccounted deposits during the demonetization period. The CIT(A) dismissed the assessee's appeal due to a delay of 855 days in filing, which the assessee attributed to financial struggles and the impact of COVID-19. The Tribunal found the delay in filing the appeal before the CIT(A) and the delay in filing the present appeal to be justifiable, considering the circumstances presented by the assessee, including the closure of her business and financial losses.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669428 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Keywords: Condonation of delay; Set aside; Period of limitation
• Section: 144; 142(1); 139

Judgement Text

" INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 1403/DEL/2025 Assessment Year: 2017-18 Mrs.Sunita Vijay, B-62, 2nd Floor, Sector-8, Dwarka, Delhi PIN: 1100 75 PAN No. AGEPV2684H Vs. ITO, Ward-44(1), Delhi (Appellant) (Respondent) O R D E R PER VIMAL KUMAR, JUDICIAL MEMBER: The Application for condonation of delay of 7 days and appeal are against order dated 11.12.2024 of Learned Commissioner of Income-Tax/National Faceless Assessment Centre (NFAC), Delhi (hereinafter referred as “Ld. CIT(A)\") under Section 250 of the Income Tax Act, 1961 (“hereinafter referred as “the Act”) arising out of order dated 21.12.2019 passed by the ITO, Ward - 44(1), Delhi (hereinafter referred as “Ld. AO\") under Section 144 of the Act for assessment year 2017-18. Assessee by: N o n e Department by: Ms. Harpreet Kaur Hansra, CIT (DR) Date of Hearing: 25.06.2025 Date of pronouncement: 25.06.2025 ITA No.1403/Del/2025 2 2. Brief facts of case are that as per the information available on record, assessee deposited Rs.13,79,000/- during demonetization period i.e. from 09.11.2016 to 30.12.2016 and her bank account. Total amount of Rs.1,15,06,952/- was credited in various bank accounts during assessment year. The assessee neither filed any online response to the source of cash deposit during demonetization nor filed any ITR under Section 139 of the Act. The case was identified non-filer and notice under Section 142(1) of the Act was issued to assessee to file return on 22.01.2018. The assessee failed to furnish requisite information/details in response to notice under Section 142(1) of the Act. Therefore, on completion of proceedings, Ld. AO vide order dated 21.12.2019 made addition of Rs.1,15,06,952/-. 3. Against order dated 21.12.2019, appellant/assessee filed application for condonation of 855 days in filing appeal and appeal before Ld. CIT(A) which were dismissed vide order dated 11.12.2024. 4. Being aggrieved, appellant/assessee preferred application for condonation of delay of 7 days in filing present appeal. 5. Appellant/assessee in affidavit submitted that she is aged about 37 years. She was running proprietorship business of e-rickshaws and its parts. In May, 2017, the business started incurring losses. There was default in meeting out her financial obligations and repayment of loan taken for business. The business ITA No.1403/Del/2025 3 was shut down. Due to such condition, she was struggling and was searching job for survival. In initial months of 2020, COVID, 2019 occurred. All the notices were undelivered due to shut down of the business. Ld. CIT(A) ought to have condoned the delay of 855 days and allowed the appeal of the assessee by restoring the matter back to the Ld. AO. 6. Learned Authorized Representative for the Revenue had no objection. 7. From examination of record in light of aforesaid rival contentions, it is crystal clear that the Ld. CIT(A) vide order dated 11.12.2024 dismissed the application for condonation of delay of 852 days due to non-receipt of notices closure of business, huge financial losses. The explanation does not smack of mala fide as appellant had not gained anything by not filing appeal before the Ld. CIT(A) and Tribunal within period of limitation. Therefore, delay of 7 days in filing appeal before the Tribunal and 852 days in filing appeal before the Ld. CIT(A) are condoned. 8. In view of above material facts, in the interest of justice, it is considered expedient to set aside the orders dated 11.12.2024 of Ld. CIT(A) and 21.12.2019 of Ld. AO and restore the matter to the file of Ld. AO for fresh decision in accordance with law after affording fair opportunity to assessee. Therefore, impugned order is set aside. ITA No.1403/Del/2025 4 9. In the result, the appeal of appellant/assessee is allowed for statistical purposes. Order pronounced in the open court on 25th June, 2025. Sd/- sd/- (SHAMIM YAHYA) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 03/07/2025 Mohan Lal Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "