TaxTMI 
TaxTMI 
2020 (8) TMI 152
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....nd later I received palliative Chemotherapy. This had to be discontinued due to my poor general health condition. Moreover I am also on medication for Diabetes, Coronary artery Disease and Dyslipidemia. At present also Iam undergoing regular follow up treatment. Hence I was on continuous treatment since 2017, as evidenced by the Medical Certificate issued by the Doctor attached to Muthoot Hospitals, Kozhencherry on 13.03.2020. In the said circumstances I was not in a position to attend to my personal matters relating to Income tax etc. Due to my ill health I stepped down from the position of Managing Director and now I am only a Director in the company. Hence I could not arrange to file this appeal before this Hon'ble Tribunal in time. The Appeal ought to have been filed on or before 14.11.2018. This appeal could be filed only on 21.03.2020. Hence there occurred a delay of 494 days which is not willful. There is no willful negligence or latches on my part. In case if this delay of 493 days is not condoned, it would cause irreparable harm and injustice of this Appellant. Hence it is just and reasonable that the above delay is condoned and justice rendered to this appeal. It is....
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....spute was settled out of Court. In accordance with settlement, the assessee received a sum of Rs. 18.00 lakhs from Shri A.L.Prasad in full and final settlement of amount due from him. Before the AO, the assessee could not furnish any evidence in support of receipt of loan from his son in law, i.e., Shri Ruban Thomas. It was further claimed that excess amount of Rs. 6.00 lakhs received from Mr.A.L.Prasad represents reimbursement of expenses incurred by the assessee on behalf of company and Shri Ruban Thomas for pursuing the matter of recovery of amount. However, the assessee could not produce any evidence in support of this submission also. Hence, the AO accepted the credit to the extent of Rs. 6.75 lakhs i.e. the amount paid by the above said company and accordingly assessed the balance amount of Rs. 11.75 lakhs as income of the assessee. In the appellate proceedings, the CIT(A) granted relief of Rs. 3.00 lakhs, being the assessee's share of reimbursement of expenses and confirmed the balance addition of Rs. 8.75 lakhs. On further appeal, the ITAT Cochin Bench in ITA No.71/Coch/2016 by order dated 18.04.2016, set aside the issue of addition of Rs. 8,75,000 to the files of the Asses....
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....s could very well be an adjustment between the assessee and his daughter and son-in-law to escape income tax assessment. 9. The Hon'ble ITAT made it very clear in its order that the addition relating to Rs. 5.75 lakhs shall stand sustained, if the documents relating to criminal proceedings did not contain anything about the claim of receipt of Rs. 5.75 lakhs by way of loan from the assessee's son-in-law. It has been verified that criminal proceedings contain nothing about the claim of receipt of Rs. 5.75 lakh and the assessee has also failed to produce an concrete evidence to prove that his son-in-law ad advanced a loan to him. In the above circumstances, the assessee's claim is rejected and Rs. 5.75 lakh along with the litigation expenses of Rs. 3 lakhs claimed is disallowed. " 5. Aggrieved by the order of the Assessing Officer, the assessee filed appeal before the first appellate authority. The CIT(A) confirmed the view taken by the Assessing Officer. The relevant finding of the CIT(A) reads as follow:- "4.4. The facts of the case, the grounds of appeal and the arguments of the Appellant have been considered. The assessment under section 143(3) r.w.s. 254 is to b....
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....s of the case. 6. The Assessing Officer and the CIT(A) erred in discarding the details regarding the bank transactions and ledger entries in the books accounts of Enjayes Spices and Chemical Oils. Ltd; (of which the Appellant was the Mg.Director at the relevant time) relating to repayments of the amount after realisation in the settlement of criminal case. 7. The Assessing Officer & the CIT(A) ought to have found that the subsequent events have amply proved that The Appellant owed a sum of Rs. 5,75,000/- to his son-in-law and repaid it to Mrs.Shiny Ruban as requested by Mr.Ruban Thomas. 8. The authorities ought to have allowed the balance amount of Rs. 3 lakhs also towards litigation expenses since huge amount of expenses was incurred in recoverying the amount from Mr.Prasad who resides in a distant place in another State, especially when the Appellant produced all available documents relating to litigation. For these and other grounds that may be urged at the time of hearing, it is humbly prayed that the addition of Rs. 8,75,000/- made in the assessment may be deleted." 7. The learned AR relied on the grounds raised. The learned AR has also filed a paper book enclosing ar....