SAMEEKSHA TRUST ,MUMBAI V. INCOME TAX OFFICER (EXEMPTION) 2(1), MUMBAI, MUMBAI

ITA 816/MUM/2025

AI Insights

The case involves M/s Sameeksha Trust, which filed an appeal against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai-1, concerning the Assessment Year 2013-14. The primary issue was the dismissal of their manual appeal due to non-compliance with the electronic filing requirement introduced in 2016. The assessee argued that the failure to file electronically was a procedural defect and sought relief based on judicial precedents that advocate for justice over strict procedural adherence. However, both the CIT(A) and the Tribunal found the manual filing non-compliant with the procedural rules, leading to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473344 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Other Referred Cases: Jai Jai Ram Manohar Lal v. National Building Material Supply AIR 1969 SC 1267, Malani Trading Co. vs CIT 252 ITR 670 (Bom)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AFAQUI
• Assessee Lawyers: K. GOPAL; MANDAR
• Keywords: Condonation of delay
• Section: 143(3); 250; 11; 20

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 816/MUM/2025 (निर्धारण वर्ा / Assessment Year :2013-14) M/s. Sameeksha Trust 320/321, A-Z Industrial Estate, G.K. Marg, Lower Parel, Mumbai-400013 v/s. बिधम ITO(Exemptions)-2(1), Mumbai 6th Floor, Cumballa Hill, MTNL TE Building, Pedder Road, Dr. Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai-400026 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAATS0581L Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee by: Shri K. Gopal & Shri Mandar Vaidya रधजस्व की ओर से /Revenue by: Shri Leyaqat Ali Afaqui सुिवधई की िधरीख / Date of Hearing 24.03.2025 घोर्णध की िधरीख/Date of Pronouncement 27.03.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai-1 [hereinafter referred to as “CIT(A)”] dated 26.11.2018 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2013-14. 2. The assessee has raised the following grounds of appeal: P a g e | 2 ITA No. 816/Mum/2025 A.Y. 2013-14 M/s Sameeksha Trust “1) The Ld. CIT(A) misdirected himself in not appreciating that failure to file the appeal electronically is, at best, a procedural defect and rules of procedure are intended to be handmaids of justice. 2) The Ld. CIT(A) was not justified in ignoring the reply filed by the Appellant- assessee on 22nd November 2018 and declining to grant an opportunity to rectify the error. 3) The Ld. CIT(A) failed to appreciate the principle laid down by the Hon'ble Apex Court party that a party cannot be refused just relief, merely because of some mistake, negligence, inadvertence or even infraction of the rules of procedure (Jai Jai Ram Manohar Lal v. National Building Material Supply AIR 1969 SC 1267) 4) It is submitted that the Ld. CIT(A) ought to have given the assessee a reasonable time to cure defects, as held by the Hon'ble jurisdictional High Court in Malani Trading Co. vs CIT 252 ITR 670 (Bom). 5) The Appellant craves leave to add to or amend or alter the aforesaid grounds before the disposal of appeal as they may think fit by themselves or by their representatives.” 3. Brief facts of the case are that the assessee filed return declaring nil income on 28.09.2013. The case was selected for scrutiny and assessment was completed at an income of Rs. 1,50,93,030/-, after rejecting the claim assessee for exemption u/s 11 of the Act, vide order u/s 143(3) dated 30.03.2016. 4. Aggrieved with the order of Ld. AO, the assessee preferred an appeal in manual form before Ld. CIT(A) on 27.04.2016. Ld. CIT(A) vide order dated 26.11.2018, dismissed the appeal of the assessee with the following observations: “3.6. In view of the above, as the appellant was mandatorily required to file the appeal electronically in the first instance as per the amended provisions of Rule 45 of I.T. Rule 1962 which came in to effect from 01.03.2016 and as extended by Circular No. 20 dated 26.05.2016 which was not complied with, the manual appeal filed is not admissible as per provisions of Section 249(1) of the Act. Consequently, this appeal is dismissed as the same is not maintainable. As a result, the manual appeal is treated as dismissed. The appellant is free to e-file the appeal once again with a request for condonation of delay.” 5. Aggrieved with the order of Ld. CIT(A), the assessee has filed an appeal before the Tribunal on 05.02.2025 after a delay of 2263 days. P a g e | 3 ITA No. 816/Mum/2025 A.Y. 2013-14 M/s Sameeksha Trust 6. At the outset, it is observed that Ld. CIT(A) had directed the assessee to file the appeal electronically while dismissing the manual appeal. We, therefore, find no infirmity in the order of Ld. CIT(A) and the assessee should have filed the appeal once again electronically. Instead, the assessee has chosen to file further appeal against the order of Ld. CIT(A) before the Tribunal. We, therefore, hold that the present appeal is not maintainable. The assessee is directed to e-file the appeal before Ld. CIT(A) as per the direction of the Ld. CIT(A) along with an application for condonation of delay. 7. It is also noted that the Ld. CIT(A) himself has taken more than two years to pass the order dated 26.11.2018, dismissing the manual appeal which was filed within time on 27.04.2016. He may, therefore, take a lenient view while deciding the condonation of delay in this case keeping in view the reasons explained by the assessee in its condonation petition. 8. In the result, the appeal of the assessee is dismissed as being not maintainable. Order pronounced in the open court on 27.03.2025. Sd/- Sd/- SANDEEP GOSAIN RENU JAUHRI (न्यधनयक सदस्य/JUDICIAL MEMBER) (लेखधकधर सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 27.03.2025 अननक ेत स ुंह र जपूत/ स्टेनो P a g e | 4 ITA No. 816/Mum/2025 A.Y. 2013-14 M/s Sameeksha Trust आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "