9911796707
TMI Blog2014 (8) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... wing grounds :- "On the facts and in law, 1. The learned CIT(A) erred in dismissing the appeal which was late by 411 days, a. not appreciating that the delay in filing of appeal was caused by bonafide reasons being financial inability of the appellant to engage professional person to prepare and file the appeal on his behalf. b. by relying on certain facts which did not exist at the time of completion of assessment proceedings and accordingly were not relevant to the matter. c. for the reason that condonation would prejudice the interest of revenue. 2A. The order of the CIT (A) has resulted in upholding the erroneous addition of Rs. 19,20,62,184/- as unexplained cash credit u/s 68 of the I. Tax Act 1961, on account of deposits in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess and was not having funds to pay such a huge demand arising from the assessment and, therefore, for want of the funds the assessee could not file the appeal before CIT(A) within the period of limitation. He has further submitted that the assessee has explained the reason and cause for delay in filing the appeal before CIT(A). However, CIT(A) did not accept the explanation of the assessee and declined to condone the delay in filing the appeal. CIT(A) has given the reason that when there are huge transaction and credit entries in the bank account of the assessee then the explanation of the assessee cannot be accepted. The ld. AR has pointed out that the bank account of the assessee in the name of M/s. Viva Overseas and M/s. East India Trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other hand the ld. DR has vehemently opposed the condonation of delay and submitted that there is in-ordinate delay in filing he appeal before CIT(A) and further the explanation of the assessee is an after thought. He has relied upon the order of authorities below. 5. We have considered the rival submissions as well as relevant material on record. The assessee has explained the cause of delay in filing the appeal before CIT(A) that he had no money to pay the fee of the Representative to file the appeal and conduct the legal proceedings. We note that the assessee had admitted the return of income at Rs. 1,03,252/- whereas the AO has completed the assessment on a total income of Rs. 19,21,65,440/-. The addition of Rs. 19.20 crores has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Thakkar's statement given at the time of assessment proceedings of Deluxe Kaaran Imports Pvt. Ltd. was not accepted by the A.O of Deluxe Imports Pvt. Ltd. 3. As far as the affidavit filed by Shri Chetan Thakkar during appellate proceedings in his assessment for A.Y. 2006-07, is concerned nothing can be stated at this stage, as it can be done only the signature is verified by the authorised expert." 5.1 The AO has also accepted the fact that this amount introduced in these bank accounts was in respect of the unaccounted sales of M/s. Deluxe Karran Imports Pvt. Ltd. The relevant part of this report is as under :- "M/s. Deluxe Kaaran Imports Pvt. Ltd. has made cash sales to third parties{ actual user of goods) and a part of the cash s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee are not found as malafide or a device to cover up ulterior purpose when the entire alleged transactions were carried out through these bank accounts prima facie belongs to M/s. Deluxe Karran Imports Pvt. Ltd. Accordingly we are satisfied with the reasons explained by the assessee that the assessee was having a reasonable cause for not filing the appeal within the period of limitation. We find that the CIT(A) has rejected the explanation on the ground that a huge cash transaction was carried out in the bank account of assessee. However, these transactions have been treated by the AO as the transaction of M/s. Deluxe Karran Imports Pvt. Ltd. Accordingly in the facts and circumstances of the case and in the interest of justice we co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty of Rs. 6,46,26,455/- levied u/s 271 (1)( c) of the 1. Tax Act 1961 in respect of addition made by considering the entire deposits (credit entries) in the bank accounts of the appellant to be the concealed income of the appellant which is not accordance with law and by facts. 3. The appellant craves leave to add, alter, amend and/or vary the grounds of appeal at any time before the decision of the appeal." There was a delay of 204 days in filing the appeal before CIT(A). The CIT(A) dismissed the appeal of the assessee on the ground of limitation. The reasons and explanation which are given for delay in filing the appeal are identical as in the case of quantum appeal. Accordingly, in view of our finding on the condonation of delay in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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