2024 (10) TMI 1284 - HC - Income Tax

Condonation of delay of 860 days in re-filing the present appeal - HELD THAT - A bare perusal of the application indicates that the only ground for delay in re-filing is that there were a large number of appeals, which were filed between the period March, 2020 to March, 2022. And, the said appeals could not have been pursued on account of outbreak of the COVID-19 pandemic. It is clear that there is an inordinate delay of 880 days in re-filing the appeal. We do not find that there are sufficient grounds to justify such an inordinate delay. The application is, accordingly, dismissed. Assessment u/s 153A - addition u/s 68 treating certain balances, as available in the books of accounts, as unexplained - CIT (A) allowed assessee appeal and the addition made by the AO was deleted on the ground that since no incriminating material was found during the search conducted, the re-assessment could not be sustained as relied on the earlier decision of Kabul Chawla 2015 (9) TMI 80 - DELHI HIGH COURT also confirmed by ITAT HELD THAT - Concededly, the said issue is covered by the earlier decision of this Court in Commissioner of Income Tax v. Kabul Chawla (supra) which has been recently cited with approval by the Supreme Court in Principal Commissioner of Income Tax, Central-3 v. Abhisar Buildwell Pvt. Ltd 2023 (4) TMI 1056 - SUPREME COURT stating since no incriminating material was found during the search conducted, the re-assessment could not be sustained. Decided in favour of assessee.

Summary

The Revenue's application for condonation of delay in re-filing the appeal was rejected due to an inordinate delay of 880 days. Consequently, the appeal (ITA 525/2024) seeking to challenge an assessment order for AY 2007-08 was dismissed on grounds of limitation and merits. The appeal was based on an addition of Rs. 8,46,11,456 under Section 68 of the Income Tax Act, which was later deleted by the learned CIT(A) and upheld by the ITAT based on precedents.