Ivan Santosh Fernandes Vs DCIT (ITAT Mumbai)
In the case Ivan Santosh Fernandes vs. Deputy Commissioner of Income Tax (ITAT Mumbai), the assessee appealed against the reassessment order and a penalty imposed for Assessment Year (AY) 2012-13. The case stemmed from the reopening of Mr. Fernandes’ assessment, which resulted in a revised income of ₹2,46,88,933, significantly higher than his originally filed amount. The appeal to the Commissioner of Income Tax (Appeals) [CIT(A)] was initially dismissed due to a delay, as CIT(A) found the appellant’s reasons unconvincing, citing that he failed to submit evidence of receiving the demand notice late or request a formal condonation. However, ITAT Mumbai observed that the delay in filing was during the Covid period, when the Supreme Court had ordered an extension of the limitation period for appeals. Given these circumstances, the tribunal criticized the CIT(A)’s dismissal on procedural grounds, emphasizing the importance of addressing the case merits. Consequently, ITAT Mumbai has remanded the case to the CIT(A) for a fresh examination on substantive grounds. It also instructed the CIT(A) to review the related penalty appeal under Section 271(1)(c) of the Income Tax Act only after deciding the reassessment appeal. By allowing both appeals for statistical purposes, ITAT aims to ensure a fair hearing for the appellant, with a renewed focus on the merits of the case. The order was pronounced on October 15, 2024.
