Mukesh Vasantkumar Chandan Vs ITO (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, was filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2014–15. The appeal was initially disposed of ex parte but later restored for fresh adjudication on merits following a Miscellaneous Application.
At the outset, the Tribunal considered a delay of 591 days in filing the appeal. The assessee explained that the CIT(A)’s order was passed ex parte and was neither received physically nor communicated through any notice of hearing. The order came to the knowledge of the newly appointed authorised representative only in July 2023, after which the appeal was promptly filed. The assessee also cited health issues and change of authorised representative as contributing factors. The Tribunal observed that the explanation was supported by an affidavit and there was no evidence of deliberate delay or mala fide intent. Applying the principle that “sufficient cause” should be construed liberally, the Tribunal condoned the delay and admitted the appeal for adjudication.
On merits, the assessee, an individual engaged in business through a proprietary concern, had filed return declaring income of ₹5,09,584. The Assessing Officer (AO) completed assessment under section 143(3), determining total income at ₹26,47,600 by making three additions: ₹5,74,420 under section 41(1), ₹2,40,000 as estimated income, and ₹13,23,600 under section 43CA.
