TaxTMI 
TaxTMI 
2026 (8) TMI 123
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....-12. 2. At the outset, there is a delay of 64 days in filing the present appeal before the Tribunal. The learned counsel for the assessee company Shri Sashank Dundu, Advocate, has filed an affidavit of Shri C. Indra Kumar, Director of the assessee-company, explaining the reasons for the delay. It was submitted that, the order of the Ld. CIT(A) was passed on 17.07.2025. However, the same came to the notice of the director of the assessee company only in the first week of October, 2025, when he logged into the Income-tax portal to verify the status of the appellate proceedings. It was further submitted that, Shri C. Indra Kumar was personally taking care of the income-tax proceedings of the assessee-company. Although his e-mail id was regi....
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....g condonation of delay of 64 days in filing the appeal before the Tribunal. We find that, the reasons explained by the assessee company appear to be bona fide and constitute "reasonable cause" for not filing the appeal within the prescribed time. The Hon'ble Supreme Court in the case of Collector, Land Acquisition Vs. MST. Katiji reported in 167 ITR 471 (SC), has laid down that a liberal and pragmatic approach should be adopted while considering applications for condonation of delay so as to advance substantial justice. Respectfully, following the principles laid down by the Hon'ble Supreme Court and considering the bona fide reasons explained by the assessee company, we condone the delay of 64 days in filing the appeal and admit th....
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....gress of Rs. 85,00,000/- and reported net profit of Rs. 47,28,278/-. Further, as per the impounded material at page No. 42, which is a balance sheet for the period from 01.04.2010 to 31.03.2011, the closing stock was mentioned at Rs. 1,21,50,000/-. The assessee company was asked to explain the difference and in response, the assessee company submitted that, the difference in the closing work-in-progress as per unaudited tally generated profit and loss account and balance sheet is on account of addition of opening work-in-progress of Rs. 36,50,000/- and closing stock of Rs. 85,00,000/-. However, at the time of finalization of books of accounts, the above discrepancy was noticed and the correct closing stock has been reported in the financial....
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....led along with the return of income is on account of addition of opening work-in-progress of Rs. 36,50,000/- to the closing work-in-progress in the tally accounts and the same has been rectified in the financial statements prepared during the course of audit of the books of account of the assessee company. Although the facts have been explained to the A.O., but the A.O. rejected the explanation and made addition of Rs. 36,50,000/-. Therefore, he submitted that, the addition made by the A.O. should be deleted. 9. The Ld. CIT(A), after considering the submissions of the assessee company and also taking note of the material found during the course of search, observed that, the assessee company failed to explain the difference with relevant ....
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....ance sheet and further, the same has been confirmed from the audited financial statements filed by the assessee company, where the assessee company has correctly taken closing work-in-progress of Rs. 85,00,000/-. Although the assessee company explained the difference by filing relevant financial statements, but the A.O. and the Ld. CIT(A) simply made addition only on the basis of difference in work-in-progress, even though the figures adopted by the A.O. are on the basis of tally generated unaudited financial statements. Therefore, he submitted that, the addition made by the A.O. should be deleted. 12. The learned Senior A.R. for the Revenue, Shri T. Sunil Gowtham, on the other hand, supporting the order of the Ld. CIT(A), submitted that....
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....ccount and balance sheet to the closing work-in-progress, which is the exact amount of difference noticed by the A.O. The learned counsel for the assessee company has furnished audited financial statements for the financial years 2009-10 and 2010-11. As per the audited financial statements for the year ended 31.03.2010, the assessee company has shown closing work-in-progress at Rs. 36,50,000/-. Further, as per the audited financial statements for the year ending 31.03.2011, the assessee company has rightly taken opening work-in-progress at Rs. 36,50,000/- and closing work-in-progress at Rs. 85,00,000/- and the difference has been taken into the profit and loss account. From the audited financial statements filed by the assessee company, we ....