2023 (11) TMI 394 - AT - Income Tax

Condonation of delay filing appeal before ITAT - delay of 137 days - Estimation of income - Bogus purchases - HELD THAT - In the present case, the delay of 137 days cannot be simply condoned on the basis of the unsubstantiated claim of the assessee that the same had occasioned on account of failure on his part to check his email account where the order of the CIT(Appeals), NFAC was dropped. In fact, the conduct of the assessee before the lower appellate authority clearly evidences his disregard for the process of law, which, find, he had carried forward before us by preferring the appeal beyond a period of 137 days after the lapse of the stipulated time period. Also, as observed by the Hon ble Supreme Court in the case of Ramlal, Motilal and Chotelal Vs. Rewa Coalfields Ltd. 1961 (5) TMI 54 - SUPREME COURT that seeker of justice must come with clean hands, therefore, now when in the present appeal the assessee appellant had failed to come forth with any good and sufficient reason that would justify condonation of the substantial delay involved in preferring of the captioned appeal, therefore, decline to condone the delay of 137 days and, thus, without adverting to the merits of the case dismiss the captioned appeal of the assessee as barred by limitation.

Summary

Issues Involved:
1. Bogus Purchases
2. Rejection of Books of Accounts
3. Delay in Filing Appeal

Summary:

Issue 1: Bogus Purchases
The assessee, engaged in rice milling and trading, declared an income of Rs. 8,02,440/- for the assessment year 2014-15. During assessment, the A.O identified purchases worth Rs. 82,75,000/- from four parties as 'bogus purchases' based on a survey operation u/s. 133A revealing that certain rice millers procured bogus bills without actual purchases. The A.O observed that the assessee failed to substantiate the genuineness of these purchases with supporting documentary evidence, such as delivery challans. Consequently, the A.O treated the entire purchase amount as bogus.

Issue 2: Rejection of Books of Accounts
Following the identification of bogus purchases, the A.O rejected the assessee's books of accounts u/s. 145(3) of the Act. Relying on the ITAT, Ahmadabad's decision in Vijay Proteins Vs. ACIT, the A.O disallowed 25% of the bogus purchase value, adding Rs. 20,68,750/- to the assessee's income. Additionally, the A.O made further additions of Rs. 1,00,000/- for freight and hamali expenses and Rs. 50,000/- for wages expenses, determining the total income at Rs. 30,21,190/-.

Issue 3: Delay in Filing Appeal
The assessee appealed against the CIT(Appeals) decision, which was dismissed in limine due to non-appearance on multiple occasions and failure to submit supporting details. The appeal to the Tribunal was filed with a delay of 137 days. The assessee attributed the delay to inadvertently failing to check his email for the CIT(Appeals) order. However, the Tribunal found the explanation unconvincing and indicative of a lackadaisical approach. Citing precedents, the Tribunal emphasized that the law of limitation must be construed strictly and declined to condone the delay, dismissing the appeal as barred by limitation.

Conclusion:
The Tribunal upheld the A.O's decision on bogus purchases and rejection of books of accounts, and dismissed the appeal due to the inordinate and unexplained delay in filing. The appeal was pronounced dismissed on November 6, 2023.