Tribunal allows appeal delay, orders fresh assessment for loan received.

The Tribunal condoned the delay in filing the appeal and admitted it for further consideration. Concerning the addition of Rs.33,01,000/- for the loan received, the Tribunal set aside previous decisions and directed a fresh assessment by the AO after allowing the appellant to present all relevant details and evidence.

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Issues:
1. Delay in filing appeal condonation.
2. Addition of Rs.33,01,000/- u/s. 68 for loan received.

Issue 1: Delay in filing appeal condonation

The appeal was filed late by 883 days, leading to the ITAT declining to condone the delay initially. The appellant approached the Hon'ble Gujarat High Court, which directed the Tribunal to reconsider the condonation issue after considering the affidavit of the office boy involved in the delay. The office boy explained that due to his heavy workload and other time-bound tasks, the appeal for the assessment year 2000-2001 was inadvertently not filed on time. The appellant argued that the delay was not due to negligence but circumstances beyond their control. The Tribunal, after reviewing the facts and circumstances, decided to condone the delay and admit the appeal for adjudication on merit.

Issue 2: Addition of Rs.33,01,000/- u/s. 68 for loan received

The AO made an addition of Rs.33,01,000/- u/s. 68 for a loan received, suspecting it to be a 'cheque badli' transaction. The appellant provided a confirmation letter and PAN of the lender, Shri Bholabhai, to establish the genuineness of the transaction. However, the AO noted discrepancies in the bank account transactions and lack of response from Shri Bholabhai to the notice under section 133(6). The CIT(A) upheld the addition, considering it a 'cheque badli' case. The Tribunal observed that additional evidence submitted before the CIT(A) was not available to the AO during assessment. To ensure justice, the Tribunal set aside the orders and directed the AO to allow the appellant to present all necessary details and evidence regarding the loan. The AO was instructed to reevaluate the issue after providing a fair opportunity to the appellant for clarification, cooperation, and hearing.

In conclusion, the Tribunal decided to condone the delay in filing the appeal and admitted it for further consideration. Regarding the addition of Rs.33,01,000/- for the loan received, the Tribunal set aside the previous decisions and directed a fresh assessment by the AO after allowing the appellant to present all relevant details and evidence.

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