Accountant’s Medical Emergency Accepted as Sufficient Cause for Delay in Evidence Submission: ITAT sets aside Additions on Capital [Read Order]
The case was remanded to the Assessing Officer for fresh verification and adjudication after admitting additional documents
![Accountant’s Medical Emergency Accepted as Sufficient Cause for Delay in Evidence Submission: ITAT sets aside Additions on Capital [Read Order]](https://images.taxscan.in/h-upload/2026/06/20/2140926-itat-accepts-medical-emergency-sets-aside-additions-taxscan.webp "Accountant’s Medical Emergency Accepted as Sufficient Cause for Delay in Evidence Submission: ITAT sets aside Additions on Capital [Read Order]")
In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench, set aside multiple additions made against the assessee after accepting that the firm’s failure to furnish documents during assessment was due to a genuine medical emergency faced by its accountant. The appellant, Hitec Cyber City Spaces LLP, had filed its return for Assessment Year 2022–23...
In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench, set aside multiple additions made against the assessee after accepting that the firm’s failure to furnish documents during assessment was due to a genuine medical emergency faced by its accountant.
The appellant, Hitec Cyber City Spaces LLP, had filed its return for Assessment Year 2022–23 declaring an income of ₹1.88 crore. The case was selected for scrutiny on grounds of substantial capital infusion and large property investments.
The Assessing Officer, citing non‑compliance with notices under Section 142(1) of the Income Tax Act, made additions totaling over ₹234 crore, including ₹80.25 crore towards unexplained capital, ₹6.89 crore for unverifiable payables, ₹2.74 crore for interest disallowance, and ₹143 crore for alleged unexplained investment in immovable property.
During the appeal, the assessee explained that its accountant, M. Someswara Rao, was unable to attend office due to his son’s serious neurological condition involving brain epilepsy and fits. An affidavit and medical records were filed to substantiate the claim. The firm sought to submit additional evidence under Rule 46A before the Commissioner (Appeals), but the request was rejected on technical grounds for not being mentioned in Form 35.
Before the Tribunal, the assessee reiterated that the lapse was unavoidable and beyond its control.
The Bench comprising Vice President Vijay Pal Rao and Accountant Member Manjunatha G. found the explanation bona fide and reasonable, observing that the accountant’s medical emergency constituted a sufficient cause for delay in submission of evidence.
The Tribunal admitted the additional documents and remanded the matter to the Assessing Officer for fresh verification and adjudication, directing that adequate opportunity be given to the assessee.
The appeal was accordingly allowed for statistical purposes.
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