ITAT allows appeal, sets aside additions on unexplained bank deposits & investments. Delay condoned, matter disposed, explanations accepted.

The ITAT allowed the appeal for statistical purposes, setting aside additions made by the AO and Ld. CIT(A) regarding unexplained bank deposits and unexplained investment in a flat. The delay in filing the appeal was condoned due to sufficient cause shown by the assessee, and the matter was disposed of on merit. The ITAT accepted the explanations provided by the assessee, directing the AO to verify the issues again based on the evidence presented.

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Issues:
1. Condonation of delay in filing appeal before ITAT.
2. Addition of Rs. 7,40,000 on account of unexplained bank deposits.
3. Addition of Rs. 1,69,000 on account of unexplained investment in a flat.

Issue 1 - Condonation of Delay:
The appeal filed by the assessee before the ITAT was delayed by 2 days. The assessee sought condonation of the delay, providing reasons for the same. The Tribunal, after considering the application and finding sufficient cause for the delay, condoned the delay as the Revenue did not object. The appeal was then disposed of on merit.

Issue 2 - Unexplained Bank Deposits:
The AO and Ld. CIT(A) had made an addition of Rs. 7,40,000 on account of unexplained bank deposits by the assessee. The AO found discrepancies in the balance sheet regarding the deposit made in a fixed deposit with Syndicate Bank. The assessee contended that the deposit was made from a disclosed bank account and should not be treated as unexplained. The ITAT, after hearing arguments, accepted the assessee's explanation and set aside the Ld. CIT(A) order, directing the matter to be verified by the AO again.

Issue 3 - Unexplained Investment in Flat:
The AO made an addition of Rs. 4,69,000 on account of unexplained investment in a flat by the assessee. The Ld. CIT(A) sustained the addition to the extent of Rs. 1,69,000 as the source of cash payments could not be explained. The assessee argued that the cash payments were made from withdrawals from his proprietary concern and were reflected in the audited books of account. The ITAT agreed with the assessee, setting aside the Ld. CIT(A) order and directing the AO to verify the explanation of the cash payments from the audited books of account.

In conclusion, the ITAT allowed the appeal of the assessee for statistical purposes, setting aside the additions made by the AO and Ld. CIT(A) on both issues related to unexplained bank deposits and unexplained investment in a flat.

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