Pradip Gangadharrao Bhude Vs ITO (ITAT Nagpur)
ITAT Nagpur Deletes Rs.20.32 Lakh Addition – Only Rs.4 Lakh Investment Proved by Bank Records- Addition Without Evidence Unsustainable – CIT(A) Dismissal in Limine Quashed – Tribunal Deletes Entire 69 Addition
Assessee filed appeal against order of CIT(A) confirming addition of Rs.20,32,500/- u/s 69 as unexplained investment.
There was a delay of 489 days in filing the appeal which Assessee explained through affidavit stating that earlier counsel had received CIT(A)’s order but failed to communicate & file appeal. On coming to know, Assessee engaged new counsel & filed appeal belatedly. Tribunal found the explanation genuine, bonafide & unintentional, hence condoned the delay.
On merits, AO had reopened assessment u/s 147 on ground that Assessee invested Rs.20,32,500/- with M/s Wasankar Wealth Management, Nagpur during FY 2012-13. AO observed that Assessee failed to explain source of investment with evidence & therefore added entire amount u/s 69. CIT(A) dismissed appeal in limine for non-compliance, without deciding on merits.
Before Tribunal, Assessee argued that he never deposited Rs.20,32,500/- in AY 2013-14, but only Rs.4,00,000/- in AY 2014-15, duly supported by bank passbook. Tribunal noted that AO himself recorded in assessment order that Rs.4,00,000/- was invested in AY 2014-15. Without corroboration, AO’s addition of Rs.20,32,500/- was unsustainable. Since order of CIT(A) was also not on merits, Tribunal deleted addition.
