Rina Ray Vs ITO (ITAT Kolkata)
Ignorance Isn’t Always Negligence: Kolkata ITAT Condones Delay & Revives Capital Gains Appeal
Delay Condoned, Merits Restored: Capital Gains Dispute Gets Fresh Life-No DVO Reference, No Finality: Capital Gain Issue Revived; Technical Rejection Set Aside—ITAT Orders Merit-Based Adjudication- Justice Over Limitation: Appeal Reopened After 189 Days
Kolkata ITAT ‘SMC’ Bench in Rina Ray Vs. ITO [ITA No. 2262/KOL/2025, AY 2018-19, order dated 31.12.2025] allowed Assessee’s appeal for statistical purposes by condoning 189-day delay and restoring matter to CIT(A) for decision on merits. Assessee, legal heir to property acquired in 1974, had sold inherited property and computed LTCG after adopting FMV as on 01.04.2001 and claimed exemption u/s 54EC. AO rejected FMV adopted by Assessee, applied original cost of ₹50,000 and computed higher LTCG without referring matter to DVO, leading to addition of ₹15.64 lakh.
CIT(A) dismissed appeal in limine solely on ground of limitation, invoking maxim ignoration juris non excusat, without examining merits. Tribunal held that delay occurred due to non-service of assessment order and lack of wilful negligence. Observing that justice should not be sacrificed at altar of technicalities, Tribunal condoned delay and remanded matter to CIT(A) with direction to adjudicate appeal on merits after granting due opportunity. Appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT KOLKATA
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