MNP Associates Vs ITO (ITAT Mumbai)
Quantum Appeal Missed by Mistake— Professional’s Oversight in Filing Appeal Not Malafide: ITAT Condoned Delay & Restores Both Orders for Fresh Hearing
Present appeals arise from orders dated 20/03/2025 & 15/04/2025 passed by NFAC for AY 2018-19. In ITA No. 5474/Mum/2025, there was delay of 93 days. Assessee submitted that the impugned quantum order was mistakenly believed by its tax professional to have already been appealed. Appeal was therefore filed only against the penalty order. This was stated to be a bonafide mistake without any malice. DR objected but could not rebut these submissions.
Tribunal observed that Revenue could not establish any malafide intention. Placing reliance on Collector Land Acquisition Vs Katiji (167 ITR 471), Tribunal held that “sufficient cause” must receive a liberal interpretation & technical lapses should not defeat substantial justice. Delay was therefore condoned.
On merits, Tribunal noted that both impugned orders were ex parte. CIT(A) dismissed the appeals by observing that Assessee was not interested in pursuing the matter. Assessee explained that notices were sent to the email ID of its employee who failed to inform it, resulting in non-compliance. Tribunal held that Assessee deserves a proper opportunity of being heard.
