Tribunal allows appeals, deletes additions for invalid returns, prevents double taxation for subsequent year

The Tribunal allowed all appeals of the assessee, directing the deletion of additions made by the AO for AYs 2011-12 to 2016-17 due to invalid revised returns and lack of incriminating material. The additional income offered in the invalid revised returns was to be considered for AY 2017-18 to prevent double taxation.

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Issues Involved:
1. Delay in filing appeals.
2. Validity of assessment orders based on time-barred revised returns.
3. Treatment of additional income offered in revised returns.
4. Legality of additions made to returned income under Section 68.
5. Disallowance of interest on unsecured loans.
6. Validity of assessments without incriminating material for unabated years.
7. Treatment of belated returns and their revision.
8. Double taxation of the same income.

Summary:

1. Delay in Filing Appeals:
The Tribunal condoned a 2-day delay in filing the appeals, considering the small duration of the delay, and admitted the appeals for adjudication.

2. Validity of Assessment Orders Based on Time-Barred Revised Returns:
The assessee's returns for AYs 2011-12 to 2016-17 were filed in response to a notice under Section 153A beyond the prescribed time limit, making them belated returns. The Tribunal held that belated returns cannot be revised, and thus, the revised returns filed on 13.12.2018 are invalid and non-est.

3. Treatment of Additional Income Offered in Revised Returns:
The additional income of Rs. 74,96,096/- offered by the assessee in the revised returns for AYs 2011-12 to 2016-17 cannot be taxed as it was offered in invalid and non-est revised returns. The Tribunal suggested that the additional income should be sustained and added for AY 2017-18 to avoid double taxation.

4. Legality of Additions Made to Returned Income Under Section 68:
Additions made by the AO for AYs 2011-12 to 2015-16 on account of unsecured loans under Section 68 and disallowance of interest on such loans were held to be invalid as there was no incriminating material found during the search for these unabated assessment years.

5. Disallowance of Interest on Unsecured Loans:
For AY 2016-17, the disallowance of interest paid on unsecured loans was directed to be deleted since the Tribunal had already deleted the additions made on account of unsecured loans in earlier years.

6. Validity of Assessments Without Incriminating Material for Unabated Years:
The Tribunal held that for unabated assessment years (2011-12 to 2015-16), the AO could not disturb the assessments without any incriminating material found during the search. This was supported by the Supreme Court decision in PCIT Vs. Abhisar Buildwell Pvt. Ltd.

7. Treatment of Belated Returns and Their Revision:
The Tribunal concluded that returns filed under Section 153A beyond the prescribed time limit are belated and cannot be revised. This was supported by the Supreme Court decision in Kumar Jagdish Chandra Sinha Vs. CIT.

8. Double Taxation of the Same Income:
The Tribunal emphasized that the additional income offered in the invalid revised returns should be sustained for AY 2017-18 to avoid double taxation.

Conclusion:
All appeals of the assessee were allowed, with the Tribunal directing the deletion of all additions made by the AO for AYs 2011-12 to 2016-17 based on the invalid revised returns and lack of incriminating material. The additional income offered in the invalid revised returns should be considered for AY 2017-18 to prevent double taxation.

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