NUPENDRA VISHWARUP JOSHI ,MUMBAI V. INCOME TAX OFFICER WARD 41(3)(1), MUMBAI

ITA 3960/MUM/2025

AI Insights

The case involves Nupendra Vishwarup Joshi, the appellant, who contested the order of the Commissioner of Income Tax (Appeals) regarding the assessment year 2018-19. Initially, the appellant filed a return of income which was later reopened under section 148 of the Income Tax Act. The appellant did not comply with subsequent notices, leading to an assessment under section 144, resulting in additions to the appellant's income. The CIT(A) dismissed the appeal due to a delay of over 90 days in filing, attributing the delay to the appellant's earlier tax consultant. The appellant contested this decision, leading to the current appeal before the ITAT, which found procedural improprieties in the dismissal and directed a re-evaluation on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717653 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 02-06-2025
• Other Referred Cases: Premkumar Arjundas Luthra (HUF) 69 taxmann.com 407 (Bom)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI
• Keywords: Set aside; Unexplained investment; Reopening of assessment
• Section: 147; 148; 144; 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JM & SHRI OMKARESHWAR CHIDARA, AM I.T.A. No. 3960/Mum/2025 (Assessment Year: 2018-19) NupendraVishwarup Joshi Flat No. 504, A-Wing, Pathanwadi, Malad East, Mumbai- 400097 PAN : AQKPJ2470P Vs. The Income Tax Officer, Ward 41(3)(1), Mumbai Room No. 847, 8th Floor, KautilyaBhawan, BKC, Bandra (East), Mumbai. Appellant) : Respondent) Appellant /Assessee by : None Revenue / Respondent by : Shri Leyaqat Ali Aafaqui, Sr.-AR Date of Hearing : 11.08.2025 Date of Pronouncement : 14.08.2025 O R D E R Per OmkareshwarChidara, AM: This appeal by the assessee is against theorder of the Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre (NFAC), Delhi [for short 'the CIT(A)] for the AY 2018-19. 2. In this case, the assessee filed a return of income with an income of Rs. 6,70,330/- for AY 2018-19 subsequently.The case was reopened by issuing a notice u/s 148 of the Act. In pursuance of notice issued u/s 148 of the Act, the appellant did not file a return of income. From the assessment order, it is seen that Printed from counselvise.com 2 ITA No.3960/Mum/2025 Nupendra Vishwarup Joshi the assessee was served notices u/s 142(1) on three different dates. Thereafter a show-cause notice was issued dt. 24/11/2022. On 25/01/2023, an issue centralised communication and a final show caused notice dt. 02/03/2023 were issued by Ld. AO. Since there was no compliance to any of these notices, the Ld. AO completed the assessment u/s 144 of the Act. While completing the assessment, the Ld. AO made an addition of Rs. 57,25,000/- u/s 69B and Rs. 2,80,840/- u/s 56(2)(x)(b) of the Act towards unexplained investment in immovable property and the differential amount as per sub-registrar value respectively. 3. Aggrieved by the addition, the assessee filed an appeal before Ld. CIT(A) and the first appellate authority dismissed the appeal as there is delay in filing of appeal by more than 90 days and adjudicated the same as under : “It is apparent that virtually no reason has been given and very conveniently blamehas been put on the \"earlier tax consultant\". Even if the advice of consultant for non filing of appeal was incorrect, it was the appellant who had agreed to the same and therefore he has to bear the cost of his action of not filing the appeal within the prescribed time limit. This reason cannot be a ground for condoning the delay in filing of appeal and therefore the appeal is not fit to be admitted. Hence, dismissed.” 4. As the Ld. CIT(A) dismissed the appeal, the appellant filed an appeal before Ld. CIT(A) with the following grounds: “The ground or grounds of appeal are without prejudice to one another. 1.a) On the facts and in the circumstances of the case and in law, the Id. CIT(A)-NFAC-Delhi erred in dismissing the appeal filed by the Appellant against the order u/s. 147 r.w.s 144 r.w.s. 144B dated 14-03-2023 in summary manner on the plea that the appeal was filed beyond the due date prescribed under law and sufficient reasons for such delay are not established. b) The Id. CIT(A)-NFAC-Delhi failed to appreciate that the Appellant was prevented by sufficient cause from furnishing the appeal in time before the CIT(A)-NFAC-Delhi and the delay in presenting the appeal ought to have been condoned in the fairness of law as the delay was not stemmed from negligence or lack of diligence. Printed from counselvise.com 3 ITA No.3960/Mum/2025 Nupendra Vishwarup Joshi 2. On the facts and in the circumstances of the case and in law, the Id. CIT(A) erred in not adjudicating on the ground Nos. 1 to 6 raised by the Appellant in the appeal without discussing these grounds on the merit of the case. 3.a) On the facts and in the circumstances of the case and in law, the Id. CIT(A) erred in confirming the action of the AO, that AO erred in re- opening the assessment u/s.147 of the Income Tax Act, 1961. The re- opening of the assessment is incorrect and invalid. b) The notice u/s 148 of the Act dated 25-03-2022 is issued by the Jurisdictional Assessing Officer in violation of provisions of section 151A of the Act. 4. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in confirming the addition of 60,05,840/- made by the AO to the income of the Appellant on account of Unexplained Investment. The Appellant craves leave to add, alter, amend or delete any or all of the above grounds of appeal.” 5. On the day of hearing before ITAT, none represented the assessee. The Ld. DR has argued Revenue’s case stating that there is continuous non-compliance from assessee’s side before the Ld. AO and the reason mentioned before the Ld. CIT(A) for filing the appeal with delay was also not convincing. Hence, the appeal of assessee deserves to be dismissed. 6. Heard the Ld. DR and perused the assessment order, Ld. CIT(A)’s order and the grounds of appeal filed by appellant before ITAT. The order of Ld. CIT(A) is dismissed simpliciter due to delay and other grounds of appeal were not adjudicated including validity of reopening of assessment. The period of delay is only 90 days (approx) and there is no reason to disbelieve the assessee’s version by Ld. CIT(A). Anyhow, the jurisdictional High Court in the case of Premkumar Arjundas Luthra (HUF) 69 taxmann.com 407 (Bom) held that Ld. CIT(A) can’t dismiss the appeal on technical grounds, but he has to pass the order on all issues of assessment order and grounds raised by appellant. In view of the same, the order Printed from counselvise.com 4 ITA No.3960/Mum/2025 Nupendra Vishwarup Joshi of Ld. CIT(A) is set aside with a direction to condone the delay as the same is only 3 months (appox) and pass an order on merits after giving an opportunity to the appellant. 6. The appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14 -08-2025. Sd/- Sd/- (ANIKESH BANERJEE) (OMKARESHWAR CHIDARA) Judicial Member Accountant Member *DishaRaut, Stenographer Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai Printed from counselvise.com "