Anand Kumar Jain Vs ITO (ITAT Agra)
The assessee filed an appeal against the order dated 23.10.2024 passed by the Commissioner of Income-tax (Appeals), NFAC, Delhi for Assessment Year 2017-18. There was a delay of 196 days in filing the appeal before the Tribunal. The assessee submitted an application for condonation of delay supported by an affidavit, stating that the delay occurred due to the demise of his counsel, Shri P.N. Agarwal, and that he was unaware of the appellate order. Upon consulting a new counsel, he immediately proceeded to file the appeal. The Tribunal observed that there was sufficient cause for the delay and, considering the peculiar facts, condoned the delay in the interest of justice.
On merits, the assessee had filed his return of income on 15.01.2018 declaring total income of ₹3,46,660/-. He was engaged in scrap trading, dealing in copper/brass scrap and electronic/mechanical scrap under a proprietary concern, Jain Enterprises. He declared sales of ₹39,62,881/- with net income of ₹3,52,021/- and computed income under Section 44AD of the Income Tax Act.
During assessment proceedings, the Assessing Officer noted cash deposits and observed from the cash book and invoices that there were no sales up to 30.09.2016 and no sales after 28.10.2016. The Assessing Officer concluded that the assessee recorded bogus sales during October 2016 to deposit undisclosed cash after demonetization on 08.11.2016. Consequently, an addition of ₹39,62,881/- was made under Section 68 treating the entire sales as unexplained cash credits.
