ANIRUDDHA BOSE,J. - (1.) There is delay of 99 days in preferring the appeal. We have gone through the application for condonation of delay, registered as GA No.3791 of 2017 and we are satisfied that there was sufficient cause for which the appeal could not be filed within the prescribed time. We, accordingly, condone the delay and allow the application being GA No.3791 of 2017.
(2.) Certain loan advanced to the assessee from an incorporated company in which he had substantial interest was treated by the assessing officer as deemed dividend and added to his income for taxation purpose. There is no dispute, however, on that count in this appeal.
(3.) The controversy in this appeal is over correctness or legality of a penalty proceeding following such addition. The assessing officer in the assessment order had noted:- "Penalty proceedings under section 271(1)(c) have been initiated on this issue separately.";