Tribunal upholds CIT(A)'s decisions on additions, creditors' accounts. Revenue and assessee appeals dismissed.

The Tribunal upheld the CIT(A)'s decisions on various issues, including the deletion of certain additions and the reconciliation of creditors' accounts. Both the revenue and the assessee appeals were dismissed, and the cross objections filed by the assessee were deemed infructuous.

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Issues Involved:
1. Delay in filing the appeal.
2. Additions made by the Assessing Officer (AO) under Section 68 of the Income Tax Act, 1961.
3. Unexplained credit balances in various creditors' accounts.
4. Additions towards unexplained sundry creditors.
5. Disallowance under Section 40(a)(ia) of the Income Tax Act.
6. Additions towards unexplained cash deposits.
7. Reconciliation of differences in creditors' accounts.
8. Application of Rule 46A of the Income Tax Rules.

Detailed Analysis:

1. Delay in Filing the Appeal:
The assessee received the order from the Commissioner of Income Tax (Appeals) [CIT(A)] on 08.05.2018 and was required to file the appeal by 07.07.2018. The appeal was filed on 24.07.2018, resulting in a delay of 17 days. The delay was attributed to medical reasons, specifically jaundice and hypertension. The Tribunal, after hearing both parties, found the reasons satisfactory and condoned the delay.

2. Additions Made by the AO Under Section 68:
The AO made several additions to the assessee's returned income for the Assessment Year (A.Y.) 2011-12, including excess credit balances and unexplained credit balances. These additions were contested by the assessee before the CIT(A), who partly allowed the appeal. The Tribunal upheld the CIT(A)'s decision regarding the unexplained credit balance in the case of M/s Noble Cashew Industries, as the assessee failed to provide evidence to support the outstanding balance.

3. Unexplained Credit Balances in Various Creditors' Accounts:
The AO made additions for unexplained credit balances in several creditors' accounts. The CIT(A) deleted some of these additions after verifying the ledger extracts and finding the transactions genuine. However, the Tribunal dismissed the assessee's appeal on this issue as no arguments were made during the hearing.

4. Additions Towards Unexplained Sundry Creditors:
The AO added amounts related to unexplained sundry creditors, which the assessee did not contest before the CIT(A). The Tribunal dismissed these grounds as not pressed, as no arguments were made during the appeal hearing.

5. Disallowance Under Section 40(a)(ia):
The AO disallowed amounts related to shipping and delivery charges under Section 40(a)(ia). The assessee did not contest these disallowances before the CIT(A), and the Tribunal dismissed these grounds as not pressed.

6. Additions Towards Unexplained Cash Deposits:
The AO added an amount of Rs. 1,00,000 as unexplained cash deposits. The assessee did not contest this addition before the CIT(A), and the Tribunal dismissed this ground as not pressed.

7. Reconciliation of Differences in Creditors' Accounts:
The AO made additions for differences in creditors' accounts, which the assessee reconciled during the appeal before the CIT(A). The CIT(A) allowed the appeal for most creditors after verifying the reconciliations. The Tribunal upheld the CIT(A)'s decision, noting that the AO did not gather evidence to prove the outstanding credits were bogus.

8. Application of Rule 46A of the Income Tax Rules:
The revenue objected to the CIT(A) not giving the AO an opportunity to verify the additional evidence as per Rule 46A. The Tribunal dismissed this ground, stating that the CIT(A) is empowered to make independent inquiries under Section 250(4) of the Income Tax Act and decide the appeal without referring the issue to the AO.

Conclusion:
The Tribunal upheld the CIT(A)'s decisions on various issues, including the deletion of certain additions and the reconciliation of creditors' accounts. The appeals of both the revenue and the assessee were dismissed, and the cross objections filed by the assessee were deemed infructuous.

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