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2024 (6) TMI 968 - AT - Income TaxIssues Involved: The issues involved in the judgment are delay in filing the appeal, addition of unexplained cash credit u/s 68 of the Income Tax Act, and the negligence of the counsel leading to adverse consequences for the assessee. Delay in Filing the Appeal: The assessee filed an appeal against the order dated 15.07.2022 passed by the ld. CIT(A) NFAC, Delhi for assessment year 2017-18 after a delay of 233 days. The reasons for the delay were explained in an application and affidavit, stating that the new manager was unaware of the appeal notice due to the transfer of the previous manager, resulting in the delay. The Tribunal found the delay to be inadvertent and bonafide, condoned it, and decided to hear the appeal on merits. Addition of Unexplained Cash Credit: The Assessing Officer made an addition of Rs. 1,64,33,133/- as unexplained cash credit u/s 68 of the Income Tax Act. The assessee society, a primary agriculture co-operative society, explained that the cash deposited during demonetization was from its members who are farmers, labor workers, and shopkeepers. The society's aim was to encourage thrift and cooperation among members by pooling financial resources. Despite providing details of cash deposits and members, the Assessing Officer was not satisfied and made the addition. The ld. CIT(A) upheld the addition as the assessee failed to explain the nature and source of cash deposits. Negligence of Counsel and Restoration of File: The assessee faced adverse consequences due to the negligence of the counsel in not filing appeals against assessment orders and penalty orders for previous years within the prescribed time. The new counsel engaged by the assessee highlighted the negligence of the previous counsel, leading to the restoration of the file to the ld. CIT(A) for a fresh decision. The Tribunal, considering the circumstances, allowed the appeal for statistical purposes, emphasizing that the assessee should not suffer for the mistakes of the previous counsel.
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