Sanjeev Garg Vs ITO (ITAT Chandigarh)
Reassessment Upheld but Additions Modified – ITAT Chandigarh Balances Justice & Law- Condones 364-Day Delay – ₹20.45 Lakh Addition on Cash Deposit Deleted
Assessee challenged CIT(A)’s order upholding reassessment & confirming additions of ₹20,45,000 & ₹10,72,056. The appeal reached Tribunal with delay of 364 days, for which condonation was sought citing post-Covid health complications, supported by medical certificate.
Tribunal, relying on SC rulings in Collector Land Acquisition Vs. Katiji (1987) & N. Balakrishnan Vs. M. Krishnamurthy (1998), held that “sufficient cause” must be construed liberally to advance substantial justice. Since delay was due to genuine health reasons & not mala fide, condonation was granted.
On merits, reassessment was upheld as AO had specific information of cash deposit exceeding ₹20 lakh in assessee’s IDBI Bank account & Assessee had not filed return.
Regarding addition of ₹20,45,000/-, Assessee produced bank statements, demand draft details & affidavit of his brother showing cash was received from brother & used to purchase demand drafts in favour of Excise Dept. One draft was later cancelled & refunded. Tribunal found claim genuine, observing AO himself should have verified bank statements instead of presuming otherwise. Hence, addition of ₹20.45 lakh was deleted.
