Shrivardhan Biotech Private Limited Vs ITO (ITAT Pune)
Technical Delay Can’t Defeat Substantive Justice: NFAC Dismissal Set Aside & Appeal Restored
Pune ITAT set aside the ex-parte dismissal by CIT(A)/NFAC and restored the matter for fresh adjudication on merits, holding that procedural delay should not override substantial justice.
The Assessee had filed its return declaring NIL taxable income and agricultural income of ₹2.07 crore, which was accepted in scrutiny u/s 143(3). However, while completing assessment, AO erroneously computed tax liability of ₹71.47 lakh and assessed taxable income at ₹1.82 crore, despite accepting the returned income.
Assessee’s appeal before CIT(A)/NFAC was filed with a delay of 28 days, but was dismissed outright on the ground that no formal condonation application was filed, without examining the issue on merits. Before ITAT, Assessee explained that due to financial stress and administrative disruption, emails and portal communications could not be properly monitored.
ITAT observed that dismissal of appeal without adjudicating merits defeats the very purpose of appellate remedy, and relied on Hon’ble Supreme Court rulings in Collector vs. Mst. Katiji and Inder Singh vs. State of MP (2025) to reiterate that justice-oriented approach must prevail over technicalities.
Accordingly, ITAT directed CIT(A)/NFAC to condone the delay and decide the appeal afresh on merits, after granting proper opportunity to the Assessee. The appeal was thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
