TaxTMI 
TaxTMI 
2026 (4) TMI 549
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....gnoring the genuineness of such transactions. 3. That the appellant reserves the right to add, alter or amend the grounds of appeal before the appeal is decided." 2. The background facts leading to present appeal are as under: (i) The assessee "M/s Shahanshah Dal Mill" is a partnership firm. For AY 2015-16 under consideration, the assessee filed return declaring a total income of Rs. 30,690/-. The case of assessee was selected for limited scrutiny to examine the payments made to related persons u/s 40A(2)(b) and claim of high interest expenditure. The AO issued notices u/s 143(2)/142(1) which were complied by assessee. During assessment-proceeding, the AO found that the assessee-firm came into existence w.e.f. 15.06.2014. Originally, a proprietorship concern with same name of "M/s Shahanshah Dal Mill" was owned and carried by "Shri Somamal Waswani". However, "Shri Somamal Waswani" expired on 14.06.2014 and in terms of will executed by him, his son "Shri Shyam Sundar Waswani" became owner of proprietorship concern. However, "Shri Shyam Sunder Waswani" converted proprietorship concern into a partnership firm w.e.f. 15.06.2014 by adding his wife and son. Thus, the....
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....ni in his registered will dated 09.02.11, had decided to give ownership of M/s Shahnshah Dal Mill to Shri Shyam Sundar Waswani as a going concern, consequently, the ownership of M/s Shahnshah Dal Mill devolved to shri Shyam Sundar Waswani immediately after his death. On 15.06.14 immediately after death of Shri Somamal waswani, Shri Shyam Sundar Waswani after becoming owner by devolution from his father had decided that M/s Shahanshah Dal Mill to be converted to a partnership business, by adding two more partners his wife and son and the running business of Shahanshah Dal Mill was converted to partnership business on 15.06.14. It is clear that on conversion all the liabilities had been taken over by the firm and the loans outstanding in the business of individual transferred to the firm. The assessee has also submitted the copy of Audit Report of late Shri Somamal Waswani and it was noticed that all the loans were outstanding from 01.04.14 and it cannot be said that the interest amount was not payable from 01.04.14. The assessee has also paid the interest amount against loan from bank and against car loan. In both the cases the assessee has computed interest amount separately, paid ....
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....had been filed by assessee on 08.04.2025 against impugned order dated 31.01.2023 passed by CIT(A) and hence the appeal is time-barred by 739 days. Ld. AR for assessee submitted that the assessee has filed an application for condonation of delay supported by an affidavit. The application filed by assessee is scanned and re-produced below: 3rd April 2025 To Hon'ble Income Tax Appellate Tribunal Indore Sir. Subject Prayer for condonation of delay Name of the appellant Shahanshah Dal Mill PAN ACSFS1095H Assessment Year 2015-16 In the above matter it is most respectfully submitted that the order of the Id. CIT(A) was passed on 31-01-2023. The appeal u/s 253 of the Income Tax Act, 1961 before the Hon'ble Income Tax Appellate Tribunal was to be filed on or before 01-04-2023. As against this the appeal is being filed in April 2025, resulting in a delay of #33 days. The Appellant submits that the delay is unintentional and due to reasons beyond the control of the undersigned as is mentioned hereunder: 1. That the partnership firm was originally constituted by Late Shri Shyam Sunder Waswani on 15-06-2014. He had ....
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.... For Shahanshah Dal Mill sd/- (Narendra Waswani) Partner 4. The Para No. 1 and 2 of the above application gives background relating to constitution of present assessee-firm w.e.f. 15.06.2014. Thereafter, in Para 3 of application, it is submitted that all details of assessee-firm were in the knowledge of "Shri Shyam Sunder Waswani" but unfortunately, he too expired on 06.03.2018. After his demise, the firm was re-constituted by "Shri Narendra Waswani" son of late "Shri Shyam Sunder Waswani" but "Shri Narendra Waswani" remained unaware of the appeal pending before CIT(A) [the appeal before CIT(A) was filed on 03.11.2017 against assessment-order dated 25.09.2017]. That apart, the counsel of assessee, CA M.K. Sharma, also expired on 13.12.2020 during Covid-19 pandemic. Therefore, due to such onerous circumstances one after other, neither there could be participation in the hearings given by CIT(A) nor the present appeal could be filed in time before ITAT. Ld. AR submitted that there is "sufficient cause" for delay and hence the delay should be condoned. Ld. DR for Revenue left the matter to the wisdom of Bench without raising any objection. We have conside....