TaxTMI 
TaxTMI 
2025 (8) TMI 839
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....duly sworn affidavit dated 01.04.2025, wherein it has been explained that the delay occurred due to inadvertent omission on the part of the assessee in handing over the impugned order and relevant documents to the new Chartered Accountant engaged for filing the appeal before the Tribunal. It has been further submitted that upon follow-up, the necessary papers were eventually submitted, and the appeal was filed shortly thereafter. 2.2 While the explanation offered in the affidavit appears to be bona fide, we express our serious displeasure over the casual manner in which the statutory timeline has been handled. The assessee ought to have exercised due diligence in ensuring timely filing, particularly when professional assistance was sought. 2.3 Nevertheless, in the interest of substantial justice and considering that the delay is marginal and not deliberate, we are inclined to condone the delay of 20 days. The delay is accordingly condoned, albeit with a caution to the assessee to be more vigilant in future proceedings. The appeal is admitted for adjudication on merits. 3.3 Facts of the Case 3.1 The assessee filed his original return of income for A.Y. 2013-14 on 29.03.2....
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....of Baroda that total credits of Rs. 91,71,722/- were reflected during the year under consideration. Despite specific opportunity, no explanation or break-up of these credits was submitted. The assessee failed to respond to the show cause notices, nor did he furnish the required documents or file a revised return. In the absence of any compliance or explanation, the AO proceeded to complete the assessment ex parte under section 144 r.w.s. 147 based on material available on record. 3.4 Aggrieved by the above ex parte assessment, the assessee preferred appeal before the learned CIT(A) challenging the validity of the reassessment proceedings on the ground that alleged escapement pertained to non-fulfilment of IDS declaration, which at best related to A.Y. 2017-18 and not to the year under appeal. The addition of Rs. 92,62,433/- was disputed on the ground that the actual acquisition cost of the immovable property was Rs. 66,00,000/-, and the higher figure adopted by AO was based on stamp valuation as on 01.06.2016, which is not relevant to A.Y. 2013-14. It was contended that Rs. 91,71,722/- represented credits from identifiable sources, such as loan from relative, interest income, di....
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....t further submits that the Id. CIT(A) failed to appreciate these facts and upheld the order passed by Id. AO. 1.04 Your appellant prays Your Honour to hold so now and quash the reassessment being bad in law, illegal and non-est. WITHOUT PREJUDICE TO ABOVE: 2.00 Addition of Rs. 91,71,722/- as unexplained income u/s 69A of the Act: 2.01 On the facts and circumstances of your appellant's case as well as in law,, the Id. AO erred in making addition of all credit entries in the bank account of your appellant with Bank of Baroda on the presumption that they all are unexplainable and hence income of your appellant. Ld. CIT(A) also erred in confirming the addition made by Id. AO without appreciating the facts that the amounts include loans from relatives, certain cheque return entries and income in the nature of interest and dividend, which were offered for tax by your appellant in the return of income filed. 2.02 Your appellant prays Your Honour to hold so now and direct the Id. AO to delete addition made. 3.00 Addition of Rs. 9,32,142/- by disallowing the business expenses: 3.01 On the facts and circumstances of your appe....
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....sessment in A.Y. 2013- 14 no longer survives. 6. The learned Departmental Representative (DR), on the other hand, placed reliance on the orders of lower authorities and submitted that the assessee remained non-compliant during the reassessment proceedings despite issue of statutory notices including notice under section 133(6), and did not respond to the show cause notices issued by the Assessing Officer. The DR further stated that no supporting evidence or submissions were filed before the CIT(A) either, and the appeal was rightly disposed of on merits based on available material. Regarding the legal ground challenging jurisdiction under section 147, the DR argued that the assessee had not raised any objection during reassessment proceedings, and hence, the issue should not be agitated at the appellate stage without availing the opportunity provided under law. 7. We have carefully considered the rival submissions, perused the orders of the lower authorities, and examined the material available on record. The assessee has raised three grounds in substance: (i) challenge to the validity of reassessment proceedings under section 147/148; (ii) addition of Rs. 91,71,722/- as unex....
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....ppellate stage. 7.1.5 We also note that the Assessing Officer has already made a protective addition of Rs. 92,62,433/- in A.Y. 2017-18, and the assessee has challenged the same in appeal before the learned CIT(A), which is presently pending adjudication. In these circumstances, no prejudice is caused to the interest of the Revenue by setting aside the reassessment framed for the earlier year. 7.1.6 In view of the above discussion, we hold that the reassessment proceedings initiated for A.Y. 2013-14 are bad in law and liable to be quashed. The assessment order dated 06.12.2019 passed under section 144 r.w.s. 147 is accordingly set aside. 7.2 Ground No. 2: Addition of Rs. 91,71,722/- under section 69A 7.2.1 In light of our decision on Ground No. 1, the very foundation of the reassessment has been held to be void ab initio. Therefore, the addition made under section 69A in the reassessment order does not survive. 7.2.2 Nevertheless, for completeness, we also find that the assessee had submitted that the impugned bank credits reflected loan from relatives, cheque return entries, interest and dividend income. However, in absence of participation in assessment and appella....