Deepali Dilip Dhumale Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) “A” Bench, Pune, has set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)] in the case of Deepali Dilip Dhumale, for the Assessment Year 2017-18. The assessee’s appeal was originally dismissed by the CIT(A) due to a delay in filing, with the CIT(A) also noting that the case appeared weak on merits. The ITAT noted that the total income was assessed at Rs. 6,72,31,213/- with a tax demand of Rs. 8,81,35,469/-.
The assessee had challenged the CIT(A)’s decision, arguing that there was sufficient cause for the delay, including her hospitalization and the critical illness and subsequent death of her tax practitioner. The ITAT found these reasons compelling and condoned the delay, stating that there was a delay of 374 days in filing the appeal before the Tribunal also. The Tribunal emphasized the principle of “substantial justice” over procedural delays, referencing Supreme Court and Bombay High Court rulings that advocate for a liberal approach to condoning delays.
Furthermore, the ITAT observed that the CIT(A) had not properly verified the bank statements provided by the assessee, who claimed to have deposited only Rs. 87,73,675/- from her business activities. Concluding that grave injustice was caused to the assessee by the non-condonation of delay, the ITAT set aside the CIT(A)’s order and remanded the case back for de novo adjudication. The CIT(A) is now directed to provide the assessee with an opportunity to present all necessary details and be heard.
FULL TEXT OF THE ORDER OF ITAT PUNE
