DEIVANAYAGAM BHUVANESHWARI,TRICHY V. INCOME TAX OFFICER, TRICHY

ITA 703/CHNY/2025

AI Insights

The case revolves around an appeal by Smt. Deivanayagam Bhuvaneshwari against the order of the Commissioner of Income Tax (Appeals), which confirmed an addition of Rs.3,23,000 as unexplained cash credit under section 68 of the Income Tax Act, 1961. The assessee had initially not filed a return for the assessment year 2019-20, but upon receiving a notice under section 148, filed a return declaring a total income of Rs.55,814. The Assessing Officer (AO) made additions for undisclosed interest income and unexplained cash credits. The First Appellate Authority (FAA) partly allowed the appeal but confirmed the addition of Rs.3,23,000. The Tribunal, after examining the submissions and evidence, particularly the bank withdrawals of the assessee's husband, decided to delete the addition, thereby allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706004 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMANTHA MULLAMUDI
• Assessee Lawyers: ALAGAPPAN
• Keywords: Condonation of delay; Reassessment proceedings; Unexplained cash credit

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ (एस एम सी), ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ (SMC) BENCH, CHENNAI ᮰ी जॉजᭅ जॉजᭅ, उपा᭟यᭃ के समᭃ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT आयकर अपील सं./ITA No.: 703/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2019-20 Smt. Deivanayagam Bhuvaneshwari, Plot No.55, Brindvan Nagar, Nalan Nilayam, Mutharasanallur – 620 101. PAN: BKPPB 3679G Vs. The Income Tax Officer, Ward 1(1), Trichy. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Alagappan, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Smt. Samantha Mullamudi, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 26.06.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 01.07.2025 आदेश/ O R D E R This appeal filed at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 19.12.2024 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2019-20. ITA No.703/Chny/2025 :- 2 -: 2. There is a delay of 7 days in filing this appeal. The assessee has filed affidavit for condonation of delay stating therein the reasons for belated filing of this appeal. The reasons stated in the affidavit for belated filing is that, the assessee was unaware of order passed by the CIT(A) and came to know about the order passed only on receipt of order giving effect and call for payment of tax. On perusal of the same, I find there is sufficient reason for delay in filing this appeal before the Tribunal. Hence, I condone the delay in filing the appeal and proceed to dispose off the appeal on merits. 3. The solitary issue raised is with regard to addition u/s.68 of the Act amounting to Rs.3,23,000/-. 4. Brief facts of the case are as follows: For the assessment year 2019-20, the assessee did not file any return of income. The AO on the basis of information received that assessee had opened a Fixed Deposit (FD) for a sum of Rs.15,00,000/- and to examine the source of the same issued notice u/s.148 of the Act on 27.03.2023. In response to notice issued u/s.148 of the Act, the assessee filed return of income on 09.05.2023 declaring total income of Rs.55,814/-. The AO completed the assessment ITA No.703/Chny/2025 :- 3 -: u/s.147 r.w.s. 144B of the Act vide order dated 29.12.2023. In the said assessment order, the AO made addition of Rs.98,339/- on account of undisclosed interest income u/s.68 of the Act and addition of unexplained cash credit amounting to Rs.3,23,000/- u/s.68 of the Act. 5. Aggrieved by the assessment completed, the assessee preferred appeal before the First Appellate Authority (FAA). The FAA partly allowed the appeal of the assessee. As regards addition on account of undisclosed interest income, the FAA directed the AO to verify the claim of assessee and also deleted the duplication of addition made by the AO. As regards addition of Rs.3,23,000/- on account of unexplained cash deposit, the FAA confirmed the addition made by the AO. 6. Aggrieved by the order of FAA, the assessee has filed the present appeal before the Tribunal. The Ld.AR had submitted apart from assessee’s own savings, assessee’s husband had withdrawn a sum of Rs.12,80,000/- from his bank account and copy of bank account has been placed on record. It was submitted that cash deposits are out of the same. Therefore, it was prayed that addition of Rs.3,23,000/- may be deleted. ITA No.703/Chny/2025 :- 4 -: 7. The Ld.DR supported the orders of the AO and the FAA. 8. I have heard rival submissions and perused the material on record. Notice u/s.148 of the Act has been issued for the reason that assessee had made FDs to the tune of Rs.15,00,000/-. The assessee during the course of reassessment proceedings had provided the source for making the said FD. Consequently, the addition was not made by the AO. Addition of Rs.3,23,000/- was on account of cash deposits made by the assessee. On perusal of the assessee’s husband bank account, I find there is sufficient withdrawal covering the said cash deposits. Hence, I delete the addition of Rs.3,23,000/- made by the AO and sustained by the FAA. It is ordered accordingly. 9. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 1st July, 2025 at Chennai. Sd/- ((जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 1st July, 2025 RSR ITA No.703/Chny/2025 :- 5 -: आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Madurai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "