VISHAL SURINDER GUPTA,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX-17(1), MUMBAI

ITA 2667/MUM/2025

AI Insights

The case involves Vishal Surinder Gupta, the appellant, contesting an order from the Additional Commissioner of Income Tax (Appeals) for the assessment year 2013-14. The primary grievance was the ex parte disposal of the appeal by the first appellate authority without assigning any reasons, which the Tribunal found to be against the statutory mandate. The Tribunal noted that the first appellate authority dismissed the appeal in limine for non-prosecution, which is not permissible. The Tribunal admitted the appeal despite a delay of 138 days, attributing it to the actions of the assessee's tax professional.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398141 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: KAVITHA KAUSHIK
• Assessee Lawyers: JIGAR SHAH
• Keywords: Condonation of delay; Business income; Opportunity of being heard; Reasonable cause
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VP AND SHRI NARENDRA KUMAR BILLAIYA, AM ITA No. 2667/Mum/2025 (Assessment Year: 2013-14) Vishal Surinder Gupta 615, Marathon Max, LBS Marg, Mulund (West), Mumbai-400 080 Vs. Dy. CIT-17(1) Room No. 232, Kautilya Bhavan, Bandra Kurla Complex, Mumbai-40 051 PAN/GIR No. AFZPG 1242 E (Appellant) : (Respondent) Appellant by : Shri Jigar Shah Respondent by : Ms. Kavitha Kaushik Date of Hearing : 02.06.2025 Date of Pronouncement : 05.06.2025 O R D E R Per Saktijit Dey, VP: This is an appeal by the assessee against the order dated 23.09.2024 of Additional Commissioner of Income Tax (Appeals) for the assessment year (A.Y.) 2013-14. 2. Before we proceed to deal with the appeal, it may be noted that the present appeal has been filed with a delay of 138 days. The assessee has filed an application seeking condonation of delay supported by an Affidavit. It is the say of the assessee that the tax professional appointed by him to take steps in the matter did not took timely steps for filing the appeal, hence the delay. 3. Having heard the parties, we are of the view that the delay in filing the appeal was due to the reasonable cause. Hence, we are inclined to condone the delay and admit the appeal for adjudication on merits. 2 ITA No. 2667/Mum/2025 (A.Y. 2013-14) Vishal Surinder Gupta vs. Dy. CIT 4. As far as the substantial ground raised by the assessee qua the appeal is concerned, the basic grievance of the assessee is against ex parte disposal of the appeal by the first appellate authority without assigning any reason. 5. We have heard the parties and perused the materials on record. Briefly stated, the assessee is a resident individual. For the assessment year under dispute, the assessee had filed his return of income on 27.09.2013, declaring total income of Rs.54,47,490/-. While completing the assessment u/s. 143(3) of the Act, the A.O. made couple of additions, aggregating to Rs.10,77,613/-, to the business income declared by the assessee. 6. Contesting these additions, the assessee preferred an appeal before the first appellate authority, alleging that the assessee did not respond to the notice of hearing and did not make any submission against the additions made, the first appellate authority dismissed the appeal. 7. Having considered rival submissions, we find, assessee’s appeal has been dismissed by the first appellate authority with the following observations: 4.0 Decision:- Keeping in view the aforesaid factual and legal position, the appeal filed by the appellant is liable to be dismissed. 5.0 In the result, the appeal is dismissed. 8. Thus, it is evident, the order passed by the first appellate authority is cryptic and non-speaking. In fact, to put it simply, the first appellate authority has dismissed assessee’s appeal in limine for non-prosecution. This, in our view, is against the statutory mandate given to the first appellate authorities. It is fairly well settled, the first appellate authority does not have the power to dismiss the appeal for non-prosecution. Since, the aforesaid decision of the first appellate authority is not in accordance with law, we are inclined to set 3 ITA No. 2667/Mum/2025 (A.Y. 2013-14) Vishal Surinder Gupta vs. Dy. CIT aside the impugned order of the first appellate authority and restore the issues back to his file for de novo adjudication on merits after providing due and reasonable opportunity of being heard to the assessee. Further, we direct the assessee to respond to the notice of hearing to be issued by the first appellate authority and make an effective compliance facilitating smooth disposal of the proceedings before the first appellate authority. Ground is allowed for statistical purpose. 9. In the result, the appeal is allowed for statistical purpose. Order pronounced in the open court on 05.06.2025 Sd/- Sd/- (N. K. Billaiya) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 05.06.2025 Roshani, Sr. PS sCopy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT - concerned 5. DR, ITAT, Mumbai 6. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai "