PALGHAR MEMON WALFARE TRUST,PALGHAR V. CIT (EXEMPTIONS), PUNE, PUNE

ITA 1532/MUM/2025

AI Insights

The case involves the Palghar Memon Welfare Trust, which appealed against the decision of the CIT (Exemptions), Pune. The appeal was initially delayed by 60 days due to the absence of a full-time accountant and the trustees' lack of technical knowledge. The tribunal, referencing the Supreme Court's decision in Collector, Land Acquisition vs MST Kattiji & Others, prioritized substantial justice and allowed the delay. The CIT (Exemptions) had previously decided the case ex parte, as the trust failed to respond adequately to a show cause notice. The tribunal decided to restore the case to the CIT (Exemptions) to ensure a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126046 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Other Referred Cases: Collector, Land Acquisition vs MST Kattiji & Others 1987 AIR 1353 SC
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: R.A. DHYANI
• Assessee Lawyers: BHUPENDRA SHAH
• Keywords: Condonation of delay; Opportunity of being heard

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHI OMKARESHWAR CHIDARA, ACCOUNTANT MEMBER ITA No.1532/Mum/2025 (Assessment year : 2025-26) Palghar Memon Welfare Trust Danani Baungalow, Kacheri Road, Palghar-401 404 PAN : AADTP2242G vs CIT (EXEMPTIONS), PUNE APPELLANT RESPONDENT Assessee by : Shri Bhupendra Shah Respondent by : Shri R.A. Dhyani, CIT DR Date of hearing : 15/04/2025 Date of pronouncement : 22/04/2025 O R D E R Per Sandeep Gosain(JM) : At the very outset we notice that there is a delay of 60 days in filing the present appeal. In this regard, the Ld.AR has drawn our attention to the application for seeking condonation of delay wherein he has categorically mentioned that although there were 60 days to file appeal against the impugned appeal order, but the petitioner failed to do so as the petitioner trust does not have a full time accountant to lookafter its accounts and taxation matters and the trustees are ordinary lay persons, who did not have the technical knowledge to respond to such notices properly in due time and in this regard assessee has also 2 1532/Mum/2024 Palghar Memon Welfare Trust filed a detailed affidavit in support of the application for seeking condonation of delay. 2. On the other hand, the Ld.DR contested the said application and submitted that there is no sufficient cause for condoning the delay. 3. We have heard the counsels for both the parties and we have also considered the material placed on record. Considering the entire factual position as explained before us and also keeping in view the principles laid down by Hon’ble Supreme Court in the case of Collector, Land Acquisition vs MST Kattiji & Others 1987 AIR 1353 SC wherein it has been held that where substantial justice is pitted against technicalities of non deliberate delay, then in that eventuality, substantial justice is to be prevailed. In our view, the principle of advancing substantial justice is of paramount importance, hence, considering the explanation putforth by the assessee by justifiably and properly explaining the delay, which occurred in filing the present appeal and construing the expression “sufficient cause” properly, we are inclined to condone the delay of 60 days for filing the appeal before us. Therefore, the application for seeking condonation of delay stands allowed and appeal is admitted to be heard on merits. 4. Having gone through the facts of the case we notice that assessee was ex parte before the Ld.CIT(E) and in this regard it was submitted by Ld.AR that Ld.CIT(E) had not provided sufficient time to submit the documents as stated in final show cause notice issued on 20/08/2024 with compliance date by 27/08/2024 thereby depriving the petitioner trust to comply with the same. On the contrary, it was submitted by the Ld.DR that proper and sufficient opportunities were granted to the assessee, but still assessee failed to comply 3 1532/Mum/2024 Palghar Memon Welfare Trust with the final show cause notice and thus, the appeal filed by the assessee be dismissed. 5. Be that as it may, in our view, the interest of justice would be met in case the lis between the parties is decided on merit after providing fair opportunity of being heard to both the parties. Therefore, after having heard both the parties and perusal of the materials on record as well as orders passed by revenue authorities and without going into the merits of the allegations and counter allegations, we are of the view that the justice would be met only if the issue between the parties are decided on merits. Therefore, keeping in view the above position in mind, we are inclined to provide one more opportunity to the assessee to prove its case before the revenue authority. Therefore, the present appeal is restored back to the file of the CIT(E) for adjudication after providing one more opportunity of hearing to the petitioner. The assessee shall not seek any adjournment on frivolous grounds and will remain co-operative during the course of proceedings. 6. Before parting, we make it clear that our decision to restore the matter back to the file of the CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the CIT(E) independently in accordance with law. 7. In the result, appeal is allowed for statistical purpose. Order pronounced in the open court on 22nd day of April, 2025. Sd/- sd/- (OMKARESHWAR CHIDARA) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, दिन ांक/Dated: 22/04/2025 Pavanan 4 1532/Mum/2024 Palghar Memon Welfare Trust Copy of the Order forwarded to: 1. अपील र्थी/The Appellant , 2. प्रदिव िी/ The Respondent. 3. आयकर आयुक्त CIT 4. दवभ गीय प्रदिदनदि, आय.अपी.अदि., मुबांई/DR, ITAT, Mumbai 5. ग र्ड फ इल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai "