SHRI PRASHANT N SHAH LEGAL HEIR OF LATE SHRI NAVIN AMBALAL SHAH,MUMBAI V. INCOME TAX OFFICER 17(2)(4), MUMBAI

ITA 3507/MUM/2025

AI Insights

The case involves an appeal by Shri Prashant N. Shah, the legal heir of the late Shri Navin Ambalal Shah, against the order of the Additional/Joint Commissioner of Income Tax (Appeals) - 2, Chennai, which dismissed the Assessee's appeal against an assessment order. The assessment order, passed under Section 147 read with Section 143(3) of the Income Tax Act, 1961, included additions of 12.50% of Hawala Parties amounting to Rs.2,58,822. The CIT(A) dismissed the appeal due to a delay of 228 days in filing, which the Assessee explained was due to administrative delays in obtaining necessary legal documents. The Tribunal found merit in the Assessee's explanation for the delay and set aside the CIT(A)'s order, directing a re-evaluation of the case on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711298 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE
• Keywords: Set aside; Principle of natural justice
• Section: 147; 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “H (SMC)” BENCH, MUMBAI SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.3507/MUM/2025 (Assessment Year:2009-2010) Legal heir Shri Prashant N. Shah of Late Shri Navin Ambalal Shah 136, Narayan Dhuru Street, Masjid Bunder, Mumbai - 400003, Maharashtra. [PAN:ABGPS4681N] …………. Appellant The Income Tax Officer 17(2)(4), Mumbai Dr. S.S.Rao Marg, Parel, Mumbai - 400012 Maharashtra. Vs …………. Respondent Appearance For the Appellant/Assessee For the Respondent/Department : : None Shri Pravin Salunkhe Date Conclusion of hearing Pronouncement of order : : 16.07.2025 22.07.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member: 1. The present appeal preferred by the Assessee is directed against the order, dated 22/03/2025, passed by the Additional/Joint Commissioner of Income Tax (Appeals) – 2, Chennai [hereinafter referred to as ‘the CIT(A)’] under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] whereby the Ld. CIT(A) had dismissed the appeal against the Assessment Order, dated 30/06/2016, passed under Section 147 read with Section 143(3) of the Act for the Assessment Year 2009-2010. 2. The Assessee has raised following grounds of appeal : “1. On the facts and in the circumstances of the case and in law, Printed from counselvise.com ITA No.3507/Mum/2025 Assessment Year 2009-2010 2 the ld. CIT(A) has not condoned the delay in filing of appeal of 228 days. Requesting your honor, to condone the delay in filing of appeal. 2. On the facts and in the circumstances of the case and in law, the ld. AO has erred in making additions 12.50% of Hawala Parties which result in addition of Rs.2,58,822/-. Requesting your Honor, the said addition may please be deleted. 3. On the facts and in the circumstances of the case and in law, the assessment order passed by the ld. AO is in violation of the principles of natural justice as no opportunity to cross examine the said parties was given inspite of specific request made by the Appellant. The said order may please be treated as Null and Viod. 4. All the grounds of appeal are without prejudice to each other.” 3. When the appeal was taken up for hearing none was present on behalf of the Assessee. We have heard Learned Departmental Representative. 4. On perusal of the Assessment Order, dated 30/06/2016 passed under Section 147 read with Section 143(3) of the Act we find that the assessment was framed in the name of the legal heir of the Assessee. In appeal preferred before the CIT(A) against the said Assessment Order, the CIT(A) dismissed the appeal vide order, dated 22/03/2025, observing that the Assessee had failed to provide reasons for delay of 228 days in filing the appeal before the CIT(A). Being aggrieved, the Assessee has preferred the present appeal before the Tribunal on the grounds reproduced at Paragraph 2 above. 5. The Assessee has placed on record affidavit sworn on 24/06/2025 explaining that the delay in filing the appeal before the CIT(A) was on account of time taken for obtaining legal heir certificate and complying with the other formalities of filing appeal before the Learned CIT(A). In view of the explanation offered by the Assessee, we hold that the Assessee was prevented by sufficient cause for Printed from counselvise.com ITA No.3507/Mum/2025 Assessment Year 2009-2010 3 filing the appeal before the CIT(A). Accordingly, the delay of 228 days in filing the appeal before the CIT(A) is condoned. We further note that the Learned CIT(A) has passed the impugned order in the name of decease assessee (and not the legal heir) and for that reason also the impugned order passed by the CIT(A) cannot be sustained. Thus, we set aside the Order, dated 22/03/2025, passed by the Learned CIT(A) with the directions to adjudicate the grounds raised by the Assessee on merits as per law after granting Assessee as reasonable opportunity of being hear. In terms of the aforesaid the Ground No.1 raised by the Assessee is allowed for statistical purpose while Ground No.2 and 3 raised by the Assessee are dismissed as having been rendered infructuous. 6. In result the appeal preferred by the Assessee is allowed for statistical purpose. Order pronounced on 22.07.2025. Sd/- Sd/- (Om Prakash Kant) Accountant Member (Rahul Chaudhary) Judicial Member मुंबई Mumbai; िदनांक Dated : 22.07.2025 Milan,LDC Printed from counselvise.com ITA No.3507/Mum/2025 Assessment Year 2009-2010 4 आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. आयकर आयुƅ/ The CIT 4. Ůधान आयकर आयुƅ / Pr.CIT 5. िवभागीय Ůितिनिध ,आयकर अपीलीय अिधकरण ,मुंबई / DR, ITAT, Mumbai 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, सȑािपत Ůित //True Copy// उप/सहायक पंजीकार /(Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, मुंबई / ITAT, Mumbai Printed from counselvise.com "