The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) held that delay in filling appeal due to medical treatment and condones a delay of 259 days.8
The assessee had made a delay in filing the appeal for 259 days. The affidavit was filed by the assessee explaining the reason for the delay by stating that due to medical treatment, the appeal was not filed within the specified time.
The assessee had a good case on merit and has a fair chance to succeed in the appeal filed by him. So, the delay application was condoned.
The assessee is an individual deriving his income under the head salary pension. The assessee has shown the purchase of land for Rs. 35,000/- from the Builder namely M/s. Karmveer Builders.
During the search, in the premises of the builder, it was found that the sale value has been shown by the builder in his books of accounts to the assessee at Rs. 901250/- leading to the difference of Rs. 866250/- which was added under Section 69 of the Income Tax Act as an unexplained investment.
The Authorized Representative submitted that the majority payment of the purchase of the house was made in the subsequent Financial Year. Therefore, no addition can be made in the year under consideration.
The Departmental Representative supported the order of the authorities below.
The Single bench member comprising of Waseem Ahmed (Accountant member) held that on the perusal of the payment details by the assessee to the builder it was noted that only a payment of Rs. 24,000/- was made in the year under consideration and the balance payment was not made in the year in dispute.
Therefore, the tribunal found force in the argument advanced by the Authorized Representative for the assessee. The payment which has been made by the assessee in the other year, the same can be the subject matter of dispute in another year and not in the year under consideration.
Thus, an addition of Rs. 24,000/- was confirmed representing the payment to the builder in the year under consideration. Hence, the ground of appeal of the assessee was partly allowed.
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