TaxTMI 
TaxTMI 
2023 (3) TMI 982
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....itions made by Ld. AO. 2. That the Ld. CIT(A) grossly erred in law and on facts of the case while sustaining rejection of books of accounts by invoking the provision of section 145 of the Income Tax Act. 3. That the Ld. CIT(A) grossly erred in law and on facts of the case while sustaining additions of Rs. 2,57,66,755/- on account of disallowance of losses. 4. That the Ld. CIT(A) grossly erred in law and on facts of the case while sustaining additions of Rs. 32,43,285/- which was arrived at by applying notional profit rate of 5% on Gross Turnover." 3. The assessee company is engaged in the business of import and trading of mobile phones and accessories. It filed its return for AY 2012-13 on 30.09.2012 declaring loss of Rs. 2,57,66....
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....n of books under section 145(3) of the Act, disallowance of losses claimed and addition of Rs. 32,43,285/- by applying net profit rate of 5% to declared turnover taken before him and directed the Ld. AO to give credit for TDS after due verification and in accordance with law. 5. Dissatisfied, the assessee came in appeal before the Tribunal challenging the finding of the Ld. CIT(A) on the issue(s) of sustaining rejection of books of account under section 145(3) of the Act; sustaining disallowance of losses claimed as also addition of Rs. 32,43,285/- to the income of the assessee and all the grounds of appeal relate thereto. 6. The Registry noticed that the appeal filed by the assessee is late by 121 days. The assessee filed an application ....
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.... of the assessee whereas the Ld. DR was present on all the above dates of hearing. We, therefore, proceed to decide the appeal ex-parte after hearing the Ld. DR. It is submitted by the Ld. DR that it is not a fit case for condoning the impugned delay in filing the appeal. 8. We have considered the submissions of the Ld. DR and perused the application for condonation of delay available in the records. It is observed that the assessee company has alleged that inordinate delay in filing the appeal is attributable to its Chartered Accountant (CA). However, no evidence has been brought on record which confirms that the CA has admitted his fault. As stated in the application, the concerned CA Shashi Shekhar Rai resigned from his firm on 08.11.20....
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.... of prejudice to the other side will be a relevant factor so the case calls for a more cautious approach and in the latter case no such consideration may arise and such a case deserves a liberal approach. No hard and fast rule can be laid down in this regard. The court has to exercise its discretion on facts of each case keeping in mind that in construing the expression "sufficient cause" the principle of advancing substantial justice is of prime importance. 11. In CIT vs. Shankarlal Ved Prakash (HUF) 271 ITR 171 (Del) the Hon'ble Delhi High Court observed that in a case of apparent lethargy, the observation of Hon'ble Supreme Court in State of Haryana vs. Chandramani AIR 1996-SC-1623 that the expression "sufficient cause" should be consid....