Neel Kumar Ajmera Alias Nilesh Ajmera Vs PCIT (Madhya Pradesh High Court)
Madhya Pradesh High Court ruled in favor of Neel Kumar Ajmera alias Nilesh Ajmera in his appeal against the Principal Commissioner of Income Tax (PCIT), addressing a significant delay in filing an appeal before the Income Tax Appellate Tribunal (ITAT). Ajmera’s case originated from a search and seizure under Section 132 of the Income Tax Act, leading to an assessment order determining his income at ₹65.91 crore. Subsequent appeals led to a remand by ITAT, and after a fresh assessment, the Commissioner of Income Tax (Appeals) [CIT(A)] dismissed Ajmera’s appeal in 2019 due to non-appearance. Ajmera filed an appeal before ITAT in 2024 with a delay of 1,797 days, citing personal hardships, including legal disputes involving his brother, forced relocation and lack of awareness about the order. ITAT dismissed his appeal solely on limitation grounds without examining the merits of the case.
The High Court, referencing Supreme Court judgments, emphasized that while delay must be justified, a rigid limitation approach should not obstruct justice. The court acknowledged Ajmera’s reasons, including the impact of the COVID-19 pandemic, which accounted for a part of the delay. It set aside ITAT’s order, condoned the delay, and directed ITAT to hear the appeal on its merits, ensuring a fair opportunity for both parties. The ruling underscores a liberal interpretation of limitation laws to prevent technical barriers from overriding substantial justice.
