Biju Pappachan Vs ITO (ITAT Bangalore)
Assessee, retired Defence personnel, filed appeal before ITAT against NFAC order which dismissed appeal solely on delay of 298 days without examining merits.
Tribunal held delay was due to genuine reasons — relocation after retirement, non-receipt of notices at old address, dependence on consultant & lack of digital familiarity — hence delay condoned relying on SC decision in Collector Land Acquisition v. Katiji & principle that substantial justice prevails over technicalities. AO had disallowed exemption of gratuity ₹7,19,063 u/s 10(10) & commuted pension ₹15,25,689 u/s 10(10A) despite Form-16 received from Air Force, and wrongly taxed same under salary invoking 115BBE. Tribunal held AO’s action unjustified since amounts were statutorily exempt & 115BBE cannot apply to salary additions. Addition of ₹3,84,000 u/s 69A towards FD also deleted — Tribunal accepted pension & retirement benefits as explained source; held addition was based on mere suspicion.
Tribunal emphasized Govt cannot retain tax without authority of law & technical rejection of appeal would legalise injustice; therefore appeal allowed in full.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against the order of the ld. CIT(A)/NFAC dated 31.07.2025 vide DIN & Order No.ITBA/NFAC/S/250/2025-26/1079136020(1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) for the Assessment Year 2019-20.
