Tribunal allows appeals, sets aside orders, and remands for re-adjudication

The Tribunal condoned the delay in filing appeals, set aside the CIT(A)'s orders, and remanded the cases for re-adjudication on merits. The appeals were allowed for statistical purposes.

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Issues Involved:
1. Delay in filing appeals.
2. Validity of reopening assessments.
3. Jurisdiction of CIT(A).
4. Merits of the additions made by the AO.

Issue-wise Detailed Analysis:

1. Delay in Filing Appeals:
The appeals were time-barred by 847 to 1113 days. The appellants filed applications for condonation of delay, citing reasons such as the complexity of the case, pending settlement petitions, and incorrect legal advice. The Tribunal noted that the expression "sufficient cause" should be interpreted liberally to advance substantial justice. The Tribunal found the appellants' belief that their cases would be taken up by the Settlement Commission to be bona fide, supported by the fact that the CIT(A) also believed proceedings were pending before the Settlement Commission. Therefore, the delay was condoned.

2. Validity of Reopening Assessments:
A survey under section 133A revealed that a CA was creating bogus capital for various clients, including the appellants. The AO reopened assessments based on this information and issued notices under section 148. The appellants failed to explain the source of certain advances, leading to additions to their income. The Tribunal did not delve into the merits of these additions, focusing instead on procedural issues.

3. Jurisdiction of CIT(A):
The CIT(A) dismissed the appeals on the ground that the appellants had approached the Settlement Commission and proceedings were pending. The Tribunal found this reasoning flawed, especially since the CIT(A) believed proceedings were pending before the Settlement Commission, supporting the appellants' belief that they did not need to file appeals. The Tribunal set aside the CIT(A)'s orders, noting that there was no adjudication on the merits.

4. Merits of the Additions Made by the AO:
The Tribunal did not adjudicate the merits of the additions made by the AO, as the CIT(A) had dismissed the appeals on jurisdictional grounds. The Tribunal remanded the cases back to the CIT(A) for re-adjudication on merits.

Conclusion:
The Tribunal condoned the delay in filing the appeals, set aside the CIT(A)'s orders, and remanded the cases for re-adjudication on merits. The appeals were allowed for statistical purposes.

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