Condonation of delay, statutory appeal rights, and unexplained cash deposits were resolved in favour of the assessee.

A bona fide and medically supported delay in filing an income-tax appeal was treated as sufficient cause for condonation under section 253(5). The Tribunal also held that invoking revision under section 264 does not, by itself, extinguish the statutory right of appeal, so the appellate remedy remained maintainable. On the merits, cash deposits were not sustained as unexplained money under section 69A because the assessee supported the source with gift, loan, bank, and withdrawal evidence, and the addition was found to rest on conjecture rather than proper appreciation of material.

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Issues: (i) Whether the delay of 130 days in filing the appeal before the Tribunal deserved condonation under section 253(5) of the Income-tax Act, 1961; (ii) Whether filing a revision petition under section 264 of the Income-tax Act, 1961 barred the assessee from pursuing the statutory appeal before the appellate authorities; (iii) Whether the cash deposits were rightly treated as unexplained money under section 69A of the Income-tax Act, 1961.

Issue (i): Whether the delay of 130 days in filing the appeal before the Tribunal deserved condonation under section 253(5) of the Income-tax Act, 1961.

Analysis: The assessee explained the delay by reference to medical treatment and produced supporting medical material. The Tribunal applied the settled approach that substantial justice should prevail over technical considerations where the delay is shown to be bona fide and without mala fides. The explanation was accepted as constituting sufficient cause.

Conclusion: The delay was condoned in favour of the assessee.

Issue (ii): Whether filing a revision petition under section 264 of the Income-tax Act, 1961 barred the assessee from pursuing the statutory appeal before the appellate authorities.

Analysis: The Tribunal held that the right of appeal is a statutory right and is not lost merely because the assessee earlier invoked revisional jurisdiction under section 264. It found no statutory bar preventing recourse to the appellate remedy after an unsuccessful revision, and preferred the view that more than one remedy may be available unless the law expressly prohibits it.

Conclusion: The appeal was held to be maintainable and the objection based on the prior revision was rejected in favour of the assessee.

Issue (iii): Whether the cash deposits were rightly treated as unexplained money under section 69A of the Income-tax Act, 1961.

Analysis: The assessee produced the gift deed, loan documents, bank statements, and confirmations showing withdrawals from housing and gold loan sources, along with other supporting material. On the facts, the Tribunal found the withdrawals and subsequent deposits to be sufficiently explained and held that the addition was made on conjectures rather than on a proper appreciation of the evidence.

Conclusion: The addition under section 69A was deleted in favour of the assessee.

Final Conclusion: The assessee succeeded on the preliminary objections as well as on the merits, and the addition made in assessment did not survive.

Ratio Decidendi: A bona fide and sufficiently explained delay merits condonation; an unsuccessful revision under section 264 does not, by itself, extinguish the statutory appellate remedy; and a cash deposit cannot be assessed as unexplained where the source is supported by credible withdrawal and loan evidence.

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