Tribunal admits delayed appeal but rules against assessee for unexplained cash credit.

The Appellate Tribunal condoned the delay in filing the appeal and admitted it for adjudication. However, as the assessee did not appear for the hearing, the Tribunal proceeded ex parte. The Tribunal upheld the addition of unexplained cash credit under section 68 of the Income Tax Act, 1961, as the assessee failed to provide evidence or attend hearings, resulting in the dismissal of the appeal and affirmation of the addition of Rs. 1,10,20,000.

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Issues:
1. Condonation of delay in filing the appeal.
2. Adjudication of appeal ex parte due to non-appearance of the assessee.
3. Addition of unexplained cash credit u/s 68 of the Income Tax Act, 1961.

Condonation of Delay:
The appeal by the assessee for the assessment year 2012-13 was found to be time-barred by 2 days. Despite the absence of a condonation petition, the delay was condoned by the Appellate Tribunal due to the specific circumstances of the case. The appeal was then admitted for adjudication on its merits.

Adjudication Ex Parte:
Upon the case being called, no one appeared on behalf of the assessee, indicating a lack of interest in prosecuting the appeal. Consequently, the Tribunal decided to adjudicate the appeal ex parte, relying on the available material and the assistance of the Departmental Representative.

Addition of Unexplained Cash Credit:
The case involved a private limited company that declared zero income for the relevant assessment year. The Assessing Officer (AO) observed credits totaling Rs. 1,10,21,100 in the company's books, which raised concerns about the genuineness of the transactions. The AO initiated proceedings under section 68 of the Income Tax Act, 1961, for unexplained share capital and security premium amounting to Rs. 1,10,20,000. Despite notices and opportunities provided, the assessee failed to substantiate the source of the cash credits or prove the genuineness of the transactions.

The Commissioner of Income-tax (Appeals) confirmed the addition under section 68, as the assessee did not attend the hearings or provide any supporting evidence. The Tribunal, after considering the facts and circumstances, upheld the CIT(A)'s decision, noting the lack of plausible explanations or evidence from the assessee regarding the source of the share capital and security premium. Consequently, the Tribunal dismissed all grounds of appeal raised by the assessee and upheld the addition of Rs. 1,10,20,000 under section 68 of the Act.

In conclusion, the Tribunal dismissed the appeal of the assessee, affirming the addition of unexplained cash credit made by the Assessing Officer under section 68 of the Income Tax Act, 1961.

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