Appeal granted, delay condoned. Estimate not income. Unexplained credit remanded for review. Recompute interest liability.

The Tribunal partly allowed the appeal filed by the assessee. The delay in filing the appeal was condoned due to custodian-related issues. The addition of Rs. 3.90 lakhs based on a declaration under section 132(4) was deleted as it was an estimate, not additional income. The unexplained credit of Rs. 3,44,500/- was remanded for fresh adjudication as relevant documents were not considered. The interest liability was to be recomputed after adjusting the tax liability at source, following previous decisions.

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Issues:
1. Condonation of delay in filing appeal
2. Addition of Rs. 3.90 lakhs on account of declaration made under section 132(4) of the Act
3. Confirmation of addition of Rs. 3,44,500/- on account of unexplained credit
4. Charging of interest under sections 234A, 234B, and 234C of the Act

Detailed Analysis:

1. Condonation of Delay:
The assessee sought condonation of a 20-day delay in filing the appeal, attributing it to the delay in releasing the appeal fee by the custodian. The application was supported by an affidavit. The Tribunal, considering similar precedents, condoned the delay.

2. Addition of Rs. 3.90 Lakhs:
The Assessing Officer made an addition based on a declaration made under section 132(4) of the Act. The appellant argued that the declaration was an estimate and the books were incomplete. However, the AO made the addition due to undisclosed income and benami transactions. The First Appellate Authority upheld the addition. The Tribunal, following a similar case precedent, deleted the addition as it was based on an estimate and not additional income.

3. Unexplained Credit of Rs. 3,44,500/-:
The AO added this amount to the total income as the assessee failed to explain the difference between the accounts. The FAA upheld the addition, stating lack of evidence. The Tribunal found that the assessee had submitted relevant documents which were not considered by the AO. The matter was remanded back to the FAA for fresh adjudication.

4. Charging of Interest:
The Tribunal directed the AO to recompute the interest liability after reducing the tax liability at source, following a previous decision on a similar issue. The interest levy was considered mandatory, and the AO was instructed to decide the issue as per the provisions of law.

In conclusion, the appeal filed by the assessee was partly allowed, with decisions made on each issue presented before the Tribunal.

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