Court and Tribunals Must Follow Principles of Substantial Justice Rather than Technicalities: ITAT
The Income Tax Appellate Tribunal (ITAT), Mumbai, recently highlighted that substantial justice must be preferred over technical delays in filing tax appeals.
The assessee, Darshana Dinesh Ghag, faced several additions to her income, including unexplained property purchases, unexplained sales, and bank interest. The assessment was framed ex parte under Section 144.
The assessee filed an appeal late by 126 days. She explained that she had not received the notices because they were sent to her old address, which she had vacated in 2017. She also suffered from ill health and had registered on the income-tax portal for the first time only in 2025, where she came to know about the assessment. However, the CIT(A) rejected the appeal without considering the main issues. Therefore, the assessee approached the ITAT.
The ITAT accepted her explanation as genuine and not intentional. The tribunal held that the court or tribunal must follow the principles of substantial justice rather than technicalities. It further said that the dismissal of the appeal by CIT(A) without considering the merits of the case cannot be sustained. It also observed that since the order was passed ex parte under section 144, the assessee did not get a proper opportunity to present its case.
Therefore, considering the above things, the tribunal set aside both the CIT(A) order and the assessment. The case was restored to the assessing officer, directing him to issue notices to the correct address and hear the case properly.
Case Citation: Darshana Dinesh Ghag Vs ITO (ITAT Mumbai); ITA No.9155/Mum/2025; 20/04/2026; 2017-18
