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2014 (12) TMI 800 - ITAT MUMBAICondonation of delay of 465 days – inadvertent mistake by CA - Held that:- Assessee has explained a reasonable cause for not filing the appeal within the period of limitation as there was an inadvertent mistake at the office of the Chartered Accountant - by not filing the appeal within the period of limitation, the assessee cannot have any ulterior purpose - No prudent person would act in such a manner that his action can be detrimental to his own interest - By not filing the appeal on time, the assessee could not have derived any benefit - whenever substantial justice and technical considerations are opposed to each other, case of substantial justice has to be preferred and justice oriented approach has to be taken while deciding the matter on condonation of delay - the reasons explained by the assessee are not malafide and there is nothing on record to infer that by filing a belated appeal, the assessee could have achieved an ulterior purpose - the assessee was having sufficient cause for not filing the appeal within the period of limitation – the delay condoned with cost. Addition of unaccounted income – Held that:- During the course of the search proceedings, Shri Mahesh Nanji Patel admitted undisclosed income of ₹ 5 crores in the hands of the assessee based on the papers found and seized - assessee was making entries of the on-money received by it during the course of its business - u/s. 153A, the AO has the power to assess or reassess the total income in respect of each AY falling within such assessment year in case of person where a search is initiated u/s. 132 - the AO has the power to assess or reassess the total income of the assessee - what can be taxed is the undisclosed income and not the undisclosed receipts, this means that only a reasonable amount of profit which the assessee could have earned can be added - seized paper indicates assessee was receiving on-money in the ordinary course of its business - even the unaccounted expenditures are also reflected in the seized papers - a reasonable profit should be taxed which is embedded in the total unaccounted gross receipts and therefore 8% is allowed – Decided in favour of assessee.
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