Tribunal allows appeal, reduces unexplained investments, credits, and deletes addition in bank account.

The Tribunal partly allowed the appeal by condoning the delay in filing, reducing the unexplained investment to Rs. 4,44,500, and decreasing the unexplained credits in Citi Bank to Rs. 24,011. The addition in Vijaya Bank was deleted.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Addition in respect of unexplained investment of Rs. 5,62,854.
3. Addition in respect of unexplained credit of Rs. 4,46,086.

Issue-wise Detailed Analysis:

1. Condonation of Delay in Filing the Appeal:
The assessee filed the appeal with a delay of 57 days, justifying it by stating that he resides outside India and his father, the Power of Attorney (POA) holder, is a senior citizen with severe diabetes, which led to complications including gangrene and amputation. The Chartered Accountant was also unable to visit due to Covid-19 fears. The Tribunal found sufficient reason for the delay and condoned it, proceeding to dispose of the appeal on merits.

2. Addition of Rs. 5,62,854 (Unexplained Investment):
The assessee purchased a site for Rs. 41,89,654 and explained the sources as a bank loan of Rs. 26,75,000, amount received from HUF Rs. 10,25,505, and savings of Rs. 4,89,149. The Assessing Officer (A.O.) accepted the bank loan but questioned the remaining sources, allowing credit of only Rs. 9,51,800 from HUF proceeds, leaving Rs. 5,62,854 unexplained.

The CIT(A) confirmed the addition, finding the assessee's explanations and evidence insufficient. The Tribunal reviewed the evidence, including bank statements and sale deeds, and found that the gift from the father of Rs. 1,18,354 was explained, but savings of Rs. 1,44,500 and Rs. 3,00,000 from HUF proceeds were not sufficiently justified. Thus, the addition was partly allowed, reducing the unexplained investment to Rs. 4,44,500.

3. Addition of Rs. 4,46,086 (Unexplained Credit):
The A.O. added unexplained credits in two bank accounts: Rs. 1,29,326 in Citi Bank and Rs. 3,16,760 in Vijaya Bank. The assessee explained part of the credits as salary, loans, and other specific transactions, but the A.O. found Rs. 1,29,326 in Citi Bank and Rs. 3,16,760 in Vijaya Bank unexplained.

The CIT(A) partly allowed the appeal, accepting some explanations but confirming most of the A.O.'s findings. The Tribunal reviewed the evidence, including bank statements and employer confirmations, and found that certain credits like marriage and vehicle loans were explained, reducing the unexplained credits in Citi Bank to Rs. 24,011. For Vijaya Bank, the Tribunal found the account was joint with the father, who deposited rental income, and deleted the addition of Rs. 3,16,760.

Conclusion:
The appeal was partly allowed, with the Tribunal condoning the delay, reducing the unexplained investment to Rs. 4,44,500, and reducing the unexplained credits in Citi Bank to Rs. 24,011 while deleting the addition in Vijaya Bank.

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