SUNNI HANFI MASHAYAKI MOMIN TRUST ,MUMBAI V. INCOME TAX OFFICER WARD 31(1)(1), MUMBAI

ITA 7186/MUM/2025

AI Insights

The case involves the Sunni Hanfi Mashayaki Momin Trust, which appealed against orders passed by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment years 2014-15 and 2017-18. The appeals were initially delayed by 495 days due to the inaction of the assessee's consultant, who failed to advise on filing appeals against the NFAC orders. The Tribunal noted the assessee's failure to represent itself adequately at earlier stages but found no mala fide intent to abuse the appellate process. The Tribunal decided to remand the case for a fresh assessment, emphasizing the need for procedural lapses not to defeat substantial justice.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827386 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Appeal Filed On: 07-11-2025
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SWAPNIL CHOUDHARY; DR
• Assessee Lawyers: HASSAN KHAN; AR
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Procedural lapse

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) & SHRI GIRISH AGRAWAL (ACCOUNTANT MEMBER) I.T.A. No. 7185 & 7186/Mum/2025 Assessment Year: 2014-15 & 2017-18 Sunni Hanfi Mashayaki Momin Trust An-Nazir Building Momin Nagar Patel Estate Road Jogeshwari (East) Mumbai - 400102 [PAN: AAITS7625M] Vs. Income Tax Officer, Ward – 31(1)(1), Mumbai (Appellant) (Respondent) Assessee by Shri Hassan Khan, A/R Revenue by Shri Swapnil Choudhary, D/R Date of Hearing 05.01.2026 Date of Pronouncement 07.01.2026 ORDER Per Smt. Beena Pillai, JM: Present appeals filed by assessee arises out of order passed by NFAC, Delhi [hereinafter referred to as “Ld.CIT(A)”] even dated 09/04/2024 for AYs 2014-15 & 2017-18. 2. At the outset, Ld.AR submitted that, appeal has been filed by assessee before this Tribunal with a delay of 495 days. The assessee has furnished an application seeking condonation of delay wherein it is submitted that, assessee’s consultant used to look after the tax compliances on whose e-mail id the order of NFAC was delivered. However, the consultant did not take any action nor advised the assessee to file any appeal against the impugned order, causing the inadvertent delay in finalizing the appeal filed before this Tribunal. Printed from counselvise.com 2 I.T.A. No. 7185 & 7186/Mum/2025 Sunni Hanfi Mashayaki Momin Trust It is submitted that, there was no deliberate intention to cause any delay as that the assessee has a good case on merits. The Ld.AR has thus prayed for the appeal to be decided on merits of the case. 2.1. The Ld. DR submitted that, assessee consistently failed to represent itself before the authorities below, despite being afforded multiple opportunities. It was contended that, statutory notices and communications were duly issued by Ld.CIT(A)/AO to the e-mail id intimated by assessee in Form 35/Income-tax Portal respectively. The Ld.DR thus submitted that, non-appearance and failure to furnish response by assessee were attributable solely to its conduct. We have perused the submissions advanced by both sides in light of the records placed before us. 3. There is a delay in filing the appeals before the Tribunal. We have carefully considered the explanation placed on record for such delay, as well as the overall conduct of the assessee. It is a matter of record that the assessee did not diligently represent itself before the authorities below and failed to respond to statutory notices issued to the e-mail address furnished on the Income-Tax portal. However, there is no material on record to indicate any mala fide intent or deliberate attempt on the part of the assessee to abuse the appellate process. The delay appears to be attributable to negligence and lack of due care rather than to any design to gain an undue advantage. It is a settled principle of law that procedural lapses should not ordinarily defeat substantial justice and that matters should, as far as possible, be adjudicated on merits. Printed from counselvise.com 3 I.T.A. No. 7185 & 7186/Mum/2025 Sunni Hanfi Mashayaki Momin Trust Accordingly, in the interest of justice, the delay in filing the appeals is condoned, subject to appropriate safeguards. 4. The Ld.AR submitted that the assessment in the present case was completed by passing an ex parte order, as the assessee failed to comply with the notices issued during the course of the assessment proceedings. It was further submitted that even before the Ld.CIT(A), the appeals were disposed of ex parte, owing to continued non-compliance on the part of the assessee. The Ld.AR submitted that, as a consequence thereof, the assessee could not effectively represent its case before the authorities below and the issues involved could not be adjudicated on merits. It was therefore pleaded that, in the interest of justice, the appeals may be remanded to the file of the Ld.AO for fresh adjudication on merits, by granting the assessee one final opportunity of being heard. 4.1. Having considered the above undisputed facts, and while condoning the delay, we are also mindful of the conduct of the assessee. In order to balance the equities and to ensure due diligence in future proceedings, we consider it appropriate to levy costs of ₹10,000/- for each assessment year under consideration on the assessee. The assessee is directed to deposit the said costs with the State Legal Aid Authority and to furnish an affidavit evidencing payment of the costs before the Ld.AO, with a copy thereof placed on record. 4.2. Subject to payment of the aforesaid costs, the appeals are remanded to the file of the Ld.AO for de novo consideration, in Printed from counselvise.com 4 I.T.A. No. 7185 & 7186/Mum/2025 Sunni Hanfi Mashayaki Momin Trust accordance with law, after affording the assessee proper and effective opportunity of being heard. The Ld.AO shall carry out necessary verification in respect of the evidences furnished by the assesse in accordance with law. The Ld.AO shall pass a speaking order uninfluenced by the earlier orders, which are set aside for this limited purpose. 4.3. It is further made clear that, in the event of failure on the part of the assessee either to deposit the costs as directed or to cooperate or diligently prosecute the proceedings before the Ld.AO, the Ld.AO shall be at liberty to proceed in accordance with law, including completion of the assessment on the basis of material available on record, without granting any further indulgence. 5. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 07/01/2026 Sd/- Sd/- (GIRISH AGRAWAL) (BEENA PILLAI) Accountant Member Judicial Member Mumbai Dated: 07/01/2026 SC Sr. P.S. Printed from counselvise.com 5 I.T.A. No. 7185 & 7186/Mum/2025 Sunni Hanfi Mashayaki Momin Trust Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order (Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "