2023 (3) TMI 982 - AT - Income Tax

Condonation of delay - appeal filed by the assessee is late by 121 days - assessee company has alleged that inordinate delay in filing the appeal is attributable to its Chartered Accountant (CA) - HELD THAT - As stated in the application the concerned CA resigned from his firm long after appeal was filed then why did he not sworn an affidavit admitting his fault by assigning reasons therefor. It is stated in the application that order of CIT(A) was received on 21.09.2017 and was handed over to the CA but no specific date of handing it over to the CA has been mentioned. It is therefore not convincing that delay was caused due to the reasons beyond the control of the assessee company as stated in the application. The facts on record clearly indicate that delay was due to negligence lethargy or inaction on the part of the assessee company and therefore not worthy of condonation. Thus we decline to condone the inordinate delay of 121 days in filing appeal before the Tribunal. Appeal of the assessee is dismissed.

Summary

Issues Involved:
The appeal involves issues related to sustaining additions made by the Assessing Officer, rejection of books of accounts under section 145 of the Income Tax Act, disallowance of losses, and addition of a specific amount to the income of the assessee.

Sustaining Additions Made by AO:
The assessee, engaged in import and trading of mobile phones and accessories, declared a loss of Rs. 2,57,66,755 for AY 2012-13. The Assessing Officer (AO) found discrepancies in the declared profit and expenses, including a significant amount of creditors. The AO rejected the book results under section 145(3) of the Income Tax Act and determined a profit of Rs. 32,43,285 by applying a net profit rate of 5% on the declared turnover. The assessment was completed under section 143(3) of the Act. The CIT(A) upheld the AO's decision, leading to the appeal before the Tribunal.

Rejection of Books of Accounts under Section 145(3):
The CIT(A) dismissed all grounds raised by the assessee, including the rejection of books under section 145(3) of the Act. The Tribunal was approached to challenge this decision along with other issues. The delay in filing the appeal was attributed to the Chartered Accountant (CA) of the company, but the Tribunal found no sufficient cause for condonation of the delay. Despite multiple opportunities provided, the assessee failed to rebut the findings of the AO/CIT(A), resulting in the dismissal of the appeal as time-barred and lacking merit.

Disallowance of Losses and Specific Addition:
The CIT(A) also upheld the disallowance of losses claimed by the assessee and the addition of Rs. 32,43,285 to the income. The Tribunal, after considering the submissions and the application for condonation of delay, declined to condone the inordinate delay of 121 days in filing the appeal. The appeal was ultimately dismissed as time-barred and without merit, as the findings of the AO/CIT(A) remained uncontroverted by the assessee.

Conclusion:
The Tribunal dismissed the appeal of the assessee due to being time-barred and devoid of merit, as the assessee failed to provide sufficient cause for the delay and did not avail the opportunities to challenge the findings of the AO/CIT(A). The decision was pronounced on 21st March, 2023.