Meenakshi Infrastructures (P) Ltd Vs ACIT (ITAT Hyderabad)
Belated Payment of Tribunal’s Cost Not Fatal – CIT(A) Erred in Dismissing Appeal -ITAT Restores Case with Additional Cost of ₹20,000 -Substantive Justice Over Technicality –
Hyderabad Tribunal dealt with whether CIT(A) was justified in dismissing appeal solely because assessee deposited Tribunal-directed cost belatedly.
The case was in second round of litigation. Earlier, ITAT in ITA No.353/Hyd/2024 (order dated 11.07.2024) had remanded matter to CIT(A) on condition that assessee must pay ₹5,000 to Prime Minister’s Relief Fund within one month. Assessee, however, deposited it only on 21.03.2025, beyond stipulated time. CIT(A) dismissed appeal as not maintainable due to late compliance.
On further appeal, Assessee argued that delay was inadvertent, without mala fides, & substantive justice should not be denied for such a small procedural lapse. Revenue did not strongly oppose.
Tribunal observed that cost had eventually been paid, though belatedly. Since objective of cost condition stood satisfied, dismissal of appeal on technical grounds would defeat justice. However, to balance equities & discourage recurrence, Tribunal imposed additional cost of ₹20,000 payable to PMNRF within one month, and restored matter back to CIT(A) for decision on merits after giving due opportunity. Accordingly, appeal was allowed for statistical purposes.
