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Facts
The assessee appealed against an addition of Rs.18.90 Lacs made under Section 69 for peak bank deposits, which was confirmed by the CIT(A). The assessment was initially framed on a best judgment basis under Sections 144 r.w.s. 147. There was a delay of 224 days in filing the appeal, for which condonation was sought, citing the assessee facing police proceedings.
Held
The Tribunal condoned the delay in filing the appeal, acknowledging the assessee's circumstances. It set aside the impugned order and restored the matter back to the Ld. CIT(A) for de novo adjudication on merits, directing the assessee to present and prove their case afresh.
Key Issues
Whether the delay in filing the appeal should be condoned and the validity of the addition made u/s 69 for peak bank deposits.
Sections Cited
Section 144, Section 147, Section 69
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Income Tax Appellate Tribunal, “SMC” BENCH, AMRITSAR
O R D E R
Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 14-06-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 r.w.s. 147 of the Act on 07-12-2018. The registry has noted delay of 224 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of condonation petition along with supporting documents. It has been stated that the delay has happened due to the fact the assessee was facing police proceedings.
The Ld. AR also prayed for another opportunity of hearing which has been opposed by Ld. Sr. DR. The Ld. AR stated that the assessee is in a position to substantiate its case.
In the assessment order Ld. AO, on best judgment basis, made addition of peak deposits in bank account for Rs.18.90 Lacs u/s 69 of the Act. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before Tribunal.
Keeping in mind the principles of natural justice as well as the background of the assessee, I deem it fit to admit the appeal and set aside the impugned order. The appeal stands restored back to Ld. CIT(A) for de novo adjudication on merits with a direction to the assessee to plead and prove its case forthwith.
The appeal stands allowed for statistical purposes. Order pronounced on 17th December, 2025.