Tribunal grants relief in appeal due to Covid-19 delay, accepts assessee's contentions, and provides partial relief.

The Tribunal condoned the delay in filing the appeal due to the Covid-19 pandemic, allowing the appeal to be disposed of on merit. In the case of addition on account of bogus purchases, the Tribunal accepted the assessee's alternative contention, limiting the addition to 10% of the amount, providing relief. The disallowance based on a statement without an opportunity to cross-examine was deemed unjust, resulting in partial relief to the assessee. The Tribunal also agreed with the assessee's argument on the percentage of profit considered for addition, granting partial relief and partially allowing the appeal.

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Issues: Delay in filing appeal before Tribunal, Addition on account of bogus purchases, Disallowance based on statement without opportunity to cross-examine, Percentage of profit considered for addition

Delay in filing appeal before Tribunal:
The appeal filed by the assessee was directed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2011-12. There was a delay of 82 days in filing the appeal, which the partner of the assessee attributed to the prevailing Covid-19 Pandemic situation, stating it was not due to any malafide intention or negligence. The Tribunal condoned the delay as there was a sufficient cause for it, and proceeded to dispose of the appeal on merit.

Addition on account of bogus purchases:
The assessee, a partnership firm deriving income from business and profession, had its case reopened under section 148 of the Income Tax Act. The assessment completed under section 143(3) read with section 147 resulted in an addition of &8377; 8,54,993 on account of bogus purchases. The Commissioner (Appeals) restricted the addition to &8377; 1,96,477, considering only the undisclosed profit embedded in the bogus purchases at 22.98%. The Tribunal accepted the alternative contention of the assessee, restricting the addition to 10% of the amount, resulting in relief to the assessee.

Disallowance based on statement without opportunity to cross-examine:
The assessee contended that the disallowance based on a statement recorded from a witness without providing an opportunity to cross-examine was unjust. The Tribunal considered the submission and decided in favor of the assessee, restricting the addition to a lower percentage of profit, providing partial relief.

Percentage of profit considered for addition:
The assessee argued that the percentage adopted by the revenue was excessive and suggested a lower percentage based on turnover and gross profit. The Tribunal accepted the alternative contention, limiting the addition to 10% of the amount, providing part relief to the assessee. The appeal of the assessee was allowed in part, and the order was pronounced in open court on April 12, 2021.

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