G. KRISHNAMOORTHY,TUTICORIN V. ITO, WARD-2, VIRUDHUNAGAR

ITA 805/CHNY/2025

AI Insights

The case involves an appeal by G. Krishnamoorthy against the order of the CIT(A), NFAC, Delhi, which confirmed an addition of Rs. 24,36,000 to the assessee's income. This addition was made on account of unexplained cash deposits in the assessee's bank account during the demonetization period. The primary contention of the assessee was that the CIT(A) confirmed the addition without providing an adequate opportunity to present crucial bank statements that could explain the source of the cash. The Tribunal noted the absence of these statements in the lower proceedings and decided to remand the case for a fresh evaluation, ensuring that the assessee is given a fair chance to present his case with all necessary documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633468 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: SASHANK SRIVATSAN; C.A
• Keywords: Opportunity of being heard

Judgement Text

"आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री यस यस विश्वनेत्र रवि, न्यावयक सदस्य एवं श्री अविताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.805/Chny/2025 Assessment Years: 2017-18 G.Krishnamoorthy, No.95A, Ettayapuram Road, Kovilpatti, Tuticorin, Tamil Nadu-628 501. [PAN: EHLPK3311L) Income Tax Officer, Ward-2, Virudhunagar (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri Sashank Srivatsan, C.A, प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुनवाई की तारीख/Date of Hearing : 03.06.2025 घोषणा की तारीख /Date of Pronouncement : 11.06.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1073270607(1) dated 04.02.2023 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Centre(NFAC), Delhi for the assessment year 2017-18. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. 2.0 The only issue raised in the present appeal through its grounds of appeal is regarding the action of the Ld.CIT(A) in confirming the ITA No.805/Chny/2025 Page - 2 - of 3 addition of Rs. 24,36,000/- made by the Ld.AO on account of unexplained cash deposit in the bank account during the demonetization period. 3.0 At the outset, Ld. Counsel for the assessee submitted that the Ld. CIT(A) has confirmed the impugned addition without providing adequate opportunity to the assessee. It was submitted that the assessee is now in possession of all the bank statements which can indicate the genuineness of source of cash. It was submitted that the impugned bank statements could not be presented before the lower authorities on account of their unavailability. The Ld. Counsel accordingly requested that the case be remanded to the Ld. CIT(A) for fresh adjudication with the assurance that all the bank statements etc would be produced for his consideration. 4.0 Per contra, the Ld. DR placed reliance upon the order of lower authorities. 5.0 We have heard rival submissions in the light of material available on records. We have noted that there has been cash deposits in the assessee’s bank accounts during the demonetization period and which were added given inadequate filing of bank statements and other evidences before the lower authorities. Both the Ld.AO and the Ld.CIT(A) in their orders recorded that the assessee had failed to provide copies of bank statements in support of its contentions. Transactions like those of cash can be appropriately and adequately explained through ITA No.805/Chny/2025 Page - 3 - of 3 banks statements only. Be that as it may be, we are of the view that in the interest of justice, it would be appropriate to given one last opportunity to assesse and remand the matter back to the Ld.CIT(A) for fresh adjudication of the matter. Accordingly, the Ld.CIT(A) is directed to readjudicate the matter after giving due opportunity of being heard to the assessee. He may obtain a remand report from the Ld.AO if deemed necessary. The Ld.Counsel of the assessee personally assures that due compliances shall be made and all the bank statements shall be provided for perusal and consideration. Accordingly all the grounds of appeal raised by the assessee are allowed for statistical purposes. 6.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 11th , June-2025 at Chennai. Sd/- (यस यस धवश्वनेत्र रधव) (SS VISWANETHRA RAVI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 11th , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Madurai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "