PADMAKAR KRISHNARAO NANDEKAR,MUMBAI vs. DCIT-4(3)(1), MUMBAI, MUMBAI

At the outset, it is noted that there is a delay in filing the appeal as pointed out by the Registry. After hearing both the parties and perusing the facts placed on record, we find that there was reasonable cause for the delay in filing the present appeal and hence, the delay is hereby condoned and appeal is admitted for adjudication.

Briefly, the facts of the case are that the assessee filed his return of income declaring total income at Rs. 28,25,370/-. The case of the assessee was selected for scrutiny and notices u/s. 143(2) and 142(1) of the Income Tax Act, 1961 („the Act‟) were issued calling for necessary information and documentation. In response to the notices, the assessee furnished copy of return of income, Balance Sheet, Profit & Loss Account and capital A/c. However, no supporting documentation/evidences were submitted in respect of claim of expenditure u/s. 57 of the Act. The AO accordingly disallowed expenditure of Rs. 44,32,622/- claimed by the assessee against interest income and commission income and same was brought to tax in the hands of the assessee. The assessee thereafter, carried the matter in appeal before the Ld.CIT(A), however, due to non-prosecution, the appeal of the assessee was dismissed and against the said order, the assessee is in appeal before us.

During the course of hearing, the Ld.AR submitted that the assessee has filed appeal on 11-01-2020 and thereafter, first notice was issued only on 21-07-2025 and the assessee was granted only seven days time to respond to the said notice and another notice was issued on 29-07-2025 and thereafter, the Ld.CIT(A) has proceeded and dismissed the appeal on account of non-prosecution. It was submitted that it was during the Covid period, the assessment proceedings were completed and thereafter even before the Ld.CIT(A), the assessee could not represent his case due to lack of appropriate opportunity. It was submitted that the assessee wishes to place on record certain additional evidences which goes to the root of the matter in support of the claim of the expenses in respect of commission and interest income in terms of money lending license, registeration with the Asst. Registrar of Money Lenders, copy of loan agreement entered into with various parties and the bank statements, evidencing the payment of expenses. It was accordingly submitted that the above evidences are vital for proper adjudication of the appeal and the same may be admitted and the matter may be remanded to the file of the AO for necessary verification.