Additions on Partner’s Capital & Unsecured Loans Sustained – ITAT Ahmedabad

Ispatam Metals Vs ITO (ITAT Ahmedabad) Assessee filed appeal with 69 days’ delay, explaining that delay occurred as the partner handling e-communication was seriously ill & later passed away. Tribunal accepted this as a reasonable cause supported by affidavit & condoned the delay following N. Balakrishnan v. M. Krishnamurthy (SC). On merits, AO had made additions of – (i) ₹2.92 crore as unexplained partners’ capital, (ii) ₹1.85 crore as unexplained unsecured loans, & (iii) ₹67,315 as undisclosed interest income from Leelamani Infra. Assessee failed to produce bank state...