TaxTMI 
TaxTMI 
2026 (6) TMI 1175
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....nt order dated 25.04.2021 passed by the Assessment Unit, National e-Assessment Centre [hereinafter referred to as "the Assessing Officer" or "the AO"] u/s. 147 of the Income-tax Act, 1961 ("the Act"), pertaining to the Assessment Year 2012-13. 2. Briefly stated, the facts of the case are that information available on record with the Income-tax Department revealed that the assessee had deposited cash aggregating to Rs. 26,69,700/- in his bank account during the previous year relevant to the assessment year under consideration. In view of the aforesaid information and with a view to verify the nature and source of the said cash deposits, the AO formed a belief that income chargeable to tax had escaped assessment within the meaning of Secti....
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....eassessment order so passed, the assessee preferred an appeal before the Ld.CIT(A). The Ld.CIT(A), however, vide the impugned appellate order dated 13.11.2025, dismissed the appeal in limine on the ground that the appeal had been filed belatedly with a delay of 251 days and that no sufficient cause had been shown warranting condonation of such delay. 6. Aggrieved by the aforesaid order of the Ld.CIT(A), the assessee is now in further appeal before this Tribunal. 7. The Ld.AR appearing on behalf of the assessee submitted that the assessee was engaged in the business of transportation and was operating five lorries owned by him during the relevant previous year. The Ld.AR vehemently contended that the Ld.CIT(A) had erred both on facts a....
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....rated through five lorries owned by him. It was argued that the AO had mechanically treated the entire cash deposits as unexplained money u/s. 69A of the Act without conducting proper enquiries and without appreciating the nature of the assessee's business. The Ld.AR, therefore, prayed that the delay, if any, in filing the appeal before the Ld.CIT(A) be condoned and the matter be adjudicated on merits. Alternatively, it was prayed that the addition of Rs. 26,69,700/- made u/s. 69A and taxed u/s. 15BBE of the Act be deleted. 10. Per contra, the Ld.DR strongly relied upon the orders of the lower authorities. The Ld.DR submitted that despite adequate opportunities having been granted during the reassessment proceedings, the assessee failed ....
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....y the assessee before the Ld.CIT(A) fell within the period protected by the orders of the Hon'ble Supreme Court, the dismissal of the appeal on the ground of delay without examining the matter on merits was not in accordance with law. Accordingly, the impugned action of the Ld.CIT(A) in treating the appeal as time-barred is set aside. 12. Having regard to the fact that the issue lies in a narrow compass and both the parties have extensively addressed arguments on the merits of the addition, we consider it appropriate to adjudicate the matter ourselves rather than restoring the issue to the file of the first appellate authority, as such a course would only prolong the litigation without serving any useful purpose. 13. Coming to the mer....
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.... transport vehicles and the carrying on of transportation activity has not been disputed by the Revenue authorities. In the ordinary course of transport business, particularly in the unorganized sector, receipts are often collected in cash from customers and subsequently deposited into bank accounts. Therefore, the explanation that the deposits represented business collections cannot be rejected outright merely because the assessee was unable to substantiate the same through complete books of account or supporting vouchers. 15. At the same time, we are conscious of the fact that the assessee has failed to discharge the burden cast upon him by law by producing books of account, freight receipts, ledger accounts, trip sheets, confirmations....
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....stimation becomes inevitable. Considering the nature of the transportation business carried on by the assessee, the volume of cash deposits, the absence of proper books and supporting records, the failure of the assessee to fully substantiate his claim, and at the same time taking into account the fact that the Revenue has not disproved the existence of the transport business or established any independent source of undisclosed income, we are of the considered opinion that estimation of income at 15% of the total cash deposits would be fair, reasonable and in consonance with the facts of the case. 18. Accordingly, the aggregate cash deposits of Rs. 26,69,700/- are directed to be treated as gross business receipts of the assessee arising ....