BEERASWAMY YOGESHWAR MUDALIAR, AMBIKAPUR,AMBIKAPUR V. ITO, WARD-1, AMBIKAPUR, AMBIKAPUR

ITA 36/RPR/2026

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The case involves Beeraswamy Yogeshwar Mudaliar, the appellant, contesting an addition of Rs. 11,45,000 made to his income by the Income Tax Officer-1, Ambikapur, under section 69A of the Income Tax Act, 1961, for the assessment year 2013-14. Initially, this amount was added as unexplained money during the original assessment. However, following a rectification application under section 154, the addition was deleted as the source of the funds was identified as retirement benefits. Despite this, the Principal Commissioner of Income Tax (Pr. CIT) later directed a re-assessment, leading to the same addition being made again. The CIT(Appeals) reduced the addition by 50%, but the Tribunal found no legal basis for any addition under section 69A, given the acknowledged source of the deposits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837905 (ITAT-RAIPUR)
• Duration Of Justice: 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 27-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: G.S. AGRAWAL
• Keywords: Salary income
• Section: 147; 148; 144; 154; 263; 271(1)(c)

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी पाथ[ सारथी चौधरȣ, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं./ITA No.36/RPR/2026 Ǔनधा[रण वष[ /Assessment Year : 2013-14 Beeraswamy Yogeshwar Mudaliar Ward No.4, Gandhinagar, Veer Sawarkar Marg, P.O. Ambikapur, Dist. Surguja-497 001 PAN: BNXPM2592L .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer-1, Ambikapur (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri G.S. Agrawal, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 11.02.2026 घोषणा कȧ तारȣख / Date of Pronouncement : 16.02.2026 Printed from counselvise.com 2 Beeraswamy Yogeshwar Mudaliar Vs. ITO-1, Ambikapur (C.G.) ITA No.36/RPR/2026 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 10.11.2025 for the assessment year 2013-14 as per the grounds of appeal on record. 2. At the very outset, the Ld. Counsel for the assessee submitted that this is a case where the A.O added an amount of Rs.11,45,000/- during the original assessment and consequent to a rectification application filed by the assessee u/s.154 of the Income Tax Act, 1961 (for short ‘the Act’), the said addition was deleted by the A.O. For the sake of completeness, the relevant extract of the order passed by the A.O u/s. 154 of the Act, dated 02.04.2019 are extracted as follows: “Apparent from the record it is observed that in response to the notice u/s. 148 of the IT Act, 1961 the assessee filed return of income on 24-04-2018 showing total taxable income from salary (pension from State Govt.) and submitted written submission on 25-03.2019 to this office, copies of such as ITR-1 along with the computation of taxable income of Rs.3,02,680/-. Regarding cash deposits lump sum amount which were received at the time of retirement by way of PF, gratuity and leave encashment. At the same time, the assessee is having diagnosed with cancer and suffering this decease. The penalty u/s. 271(1)(c) of the Act was initiated, but after rectifying u/s. 154, this penalty does not attract. In response to the notice u/s. 148 of the IT Act, 1961 the assessee filed return of his income on 24-04-2018 vide Ack. No.612516340240418 showing total taxable salary income of Rs.3,02,680/- is accepted, and therefore, the order passed u/s. 144 of the IT Act, 1961 is rectified.” Printed from counselvise.com 3 Beeraswamy Yogeshwar Mudaliar Vs. ITO-1, Ambikapur (C.G.) ITA No.36/RPR/2026 3. Thereafter, as per order passed by the Pr. CIT u/s. 263 of the Act, dated 27.03.2021, consequential assessment order was passed wherein again the same amount addition was made vide order passed by the A.O u/s. 147 r.w.s. 263 r.w.s. 144B of the Act, dated 28.03.2022. 4. That as discernable, the Department had admitted in Section 154 proceedings that source of such cash deposits were from various retirement benefits and therefore, the income was revised and accepted at Rs.3,02,680/- by the A.O. However again the Pr. CIT through his order passed u/s. 263 of the Act had directed the A.O to inquire into the said cash deposits of Rs.11,45,000/- and accordingly, in the consequent order, dated 28.03.2022, the A.O had added the entire same amount of Rs.11,45,000/- in the hands of the assessee. 5. That during the First Appellate Proceedings, the Ld. CIT(Appeals)/NFAC had given relief of 50% of the said addition. 6. I am of the considered view that in the original assessment when the amount was added as unexplained money u/s.69A of the Act in the hands of the assessee and thereafter, in the rectification proceedings u/s. 154 of the Act, the Department itself has admitted the validity of the nature and source of such cash deposits i.e. various retirement benefits of the assessee which was deposited. In such scenario, there cannot be any Printed from counselvise.com 4 Beeraswamy Yogeshwar Mudaliar Vs. ITO-1, Ambikapur (C.G.) ITA No.36/RPR/2026 legal sustainability of any addition u/s. 69A of the Act in the hands of the assessee. In view thereof, the order of the Ld. CIT(Appeals)/NFAC is set- aside and the A.O is directed to delete the additions which had been sustained by the Ld. CIT(Appeals)/NFAC from the hands of the assessee while giving appeal effect of this order. 7. As per the aforesaid terms grounds of appeal of the assessee are allowed. 8. In the result, appeal of the assessee is allowed. Order pronounced in open court on 16th day of February, 2026. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 16th February, 2026. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, “एक-सदèय” बɅच, रायपुर / DR, ITAT, “SMC” Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur Printed from counselvise.com "