Appeal partly allowed: Delay condoned, notice valid, capital loss disallowed, unexplained credit upheld.

The appeal was partly allowed. The delay in filing was condoned, the notice under section 148 was deemed valid, the addition of Rs. 16 lacs was not sustained but the capital loss was disallowed, and the addition of Rs. 1,44,124 as unexplained credit was upheld.

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Issues Involved:
1. Delay in filing the appeal.
2. Validity of notice under section 148 of the Income Tax Act.
3. Assessment of Rs. 16 lacs related to the sale proceeds of a shop.
4. Addition of Rs. 1,44,124 as unexplained credit in the bank account.

Detailed Analysis:

1. Delay in Filing the Appeal:
The appeal was delayed by 120 days and was presented on 04.02.2013 instead of the due date of 06.02.2012. The delay was attributed to the critical medical condition of the assessee, who was undergoing treatment at Gangaram Hospital and later passed away on 20.01.2013. The appeal was filed by her son after performing her last rites. The delay was deemed to be sufficiently explained and was condoned, allowing the hearing to proceed.

2. Validity of Notice under Section 148:
The assessee contested the validity of the notice under section 148, claiming it was served beyond the six-year period stipulated by law. The notice dated 31.03.2011 was argued to have been served on 04.04.2011. The Tribunal found that there was no evidence to show the notice was served on 31.03.2011. However, it was held that the issue of notice within the stipulated time is what matters, not its service. The Tribunal referenced several judicial decisions, including R.K. Upadhyaya v. Shamabhai P. Patel, which upheld the validity of notices issued within the time limit but served later. Thus, the assessee’s claim was rejected.

3. Assessment of Rs. 16 Lacs Related to the Sale Proceeds of a Shop:
The principal issue was the assessment of Rs. 16 lacs, claimed to be the sale proceeds of a shop belonging to the assessee’s deceased son. The assessee explained that the shop was sold as a distress sale due to migration from Srinagar to Jammu. However, the explanation was unsubstantiated with no evidence of the sale transaction, property ownership, or buyer details. The Tribunal noted that the assessee's case was unevidenced and emphasized that adjudication must be based on material on record. The Tribunal concluded that either the capital loss claimed by the assessee on the sale could not be allowed, or if the sale proceeds were accepted, the amount could not be assessed as unexplained receipt. The addition of Rs. 16 lacs was not sustained, but the capital loss was also not allowed.

4. Addition of Rs. 1,44,124 as Unexplained Credit:
The assessee claimed the amount as dividend or interest from shares or debentures, or alternatively, as maturity proceeds of UTI-MIP(IV). However, no supporting documents were provided. The Tribunal noted the lack of evidence and upheld the addition as unexplained credit under section 69A, as the onus to explain the nature and source of the bank deposits was on the assessee. The Tribunal did not interfere with the addition due to the clear position of law.

Conclusion:
The appeal was partly allowed. The delay in filing was condoned, the notice under section 148 was deemed valid, the addition of Rs. 16 lacs was not sustained but the capital loss was disallowed, and the addition of Rs. 1,44,124 as unexplained credit was upheld. The order was pronounced in the open court on March 29, 2019.

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