Tribunal condones appeal delay, sets aside cash deposit addition for fresh adjudication

The delay in filing the appeal was condoned by the Tribunal due to extenuating circumstances, with a cost imposed. The addition of Rs. 49,40,750 as unexplained cash deposit was set aside for fresh adjudication by the Assessing Officer, directing the assessee to provide necessary information and cooperate. The appeal was allowed for statistical purposes, with instructions for active participation and evidence provision in the proceedings.

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Issues Involved:
1. Delay in filing the appeal.
2. Merits of the addition of Rs. 49,40,750/- as unexplained cash deposit.

Summary:

1. Delay in Filing the Appeal:
The assessee filed an appeal against the ex-parte order of the CIT(A) with a delay of 1241 days. The delay was attributed to the assessee's frequent travels to the USA to attend to family affairs and his father's illness. The assessee claimed that he was unaware of the CIT(A)'s order due to his absence from India and the non-receipt of the order. The COVID-19 pandemic also contributed to the delay, as the Supreme Court extended the limitation period for filing appeals during the pandemic. The Tribunal acknowledged the delay but noted that the assessee should have attended to his tax affairs despite his travels. However, in the interest of substantial justice, the Tribunal condoned the delay subject to a cost of Rs. 5,000/- to be deposited in the PM National Relief Fund.

2. Merits of the Addition:
The Assessing Officer (AO) made an addition of Rs. 49,40,750/- under Section 144 read with Section 147 due to the assessee's failure to explain the source of cash deposits in his Axis Bank account. The CIT(A) confirmed the addition ex-parte due to the assessee's non-appearance. The Tribunal found that the addition was made without considering the assessee's explanation and set aside the matter to the AO for fresh adjudication. The assessee was directed to provide necessary information and documentation to explain the source of the cash deposits and to cooperate with the AO for timely completion of the proceedings.

Conclusion:
The appeal was allowed for statistical purposes, with the delay condoned and the matter remanded to the AO for fresh consideration. The assessee was instructed to actively participate in the proceedings and provide the required evidence.

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