SULTANALI RASHIDA, CHENNAI V. ITO , NON CORPORATE WARD 15 (3) , CHENNAI

ITA 1054/CHNY/2022

AI Insights

The case involves an appeal by Sultanali Rashida Rehna Manzil against the order of the Commissioner of Income Tax (Appeals), which confirmed an addition of Rs. 5 Lakhs to the assessee's income for the Assessment Year 2017-18. This addition was initially made by the Assessing Officer during the assessment under section 143(3) of the Income Tax Act, citing unexplained cash deposits during the demonetization period. The Tribunal found that the Assessing Officer's rejection of the opening cash balance and the non-acceptance of reported other income as sources of the cash deposits were not justified, leading to the allowance of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133894 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 05-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 22

Judgement Text

आयकर अपीलीय अिधकरण ‘बी/ एस एम सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B/SMC’ BENCH, CHENNAI माननीय /ी मनोज कु मार अ3वाल ,लेखा सद7 के सम8। BEFORE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.1054/Chny/2022 (िनधा>रण वष> / Assessment Year: 2017-18) Sultanali Rashida Rehna Manzil, 119, 4 th Main Road, Gandhi Nagar, Adyar, Chennai – 600 020. बनाम/ V s. ITO Non Corporate Ward-15(3), Chennai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AFS P R-2 6 9 9 -B (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri M. Karunakaran (Advocate) – Ld. AR थ की ओरसे/Respondent by : Shri AR.V Sreenivasan (Addl. CIT)-Ld. DR सुनवाई की तारीख/Date of Hearing : 22-02-2023 घोषणा की तारीख /Date of Pronouncement : 22-02-2023 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 11-11-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 21-12-2019. 2. The only grievance of the assessee is confirmation of addition of Rs.5 Lacs which represent cash deposited by the assessee on various dates during demonetization period as tabulated in para-5 of the assessment order. The assessee made aggregate deposit of Rs.6 Lacs. Upon analysis of the cash book for F.Y 2016-17, Ld. AO did not accept the opening cash balance for Rs.2.27 Lacs and reduced the ITA No.1054/Chny/2022 - 2 - same to Rs.1.00 Lacs. Further, the receipts of other income of Rs.3 Lacs as reflected by the assessee in the return of income were not accepted as source of cash and addition of Rs.5 Lacs was confirmed. The Ld. CIT(A) endorsed the view of Ld. AO against which the assessee is in further appeal before us. 3. I find that the assessee as reflected other income of Rs.3 Lacs in the return of income which has been accepted by Ld. AO. Therefore, there is no reason to reject the same. The rejection of opening cash balance is also not justified since the same is carried over from earlier years. Therefore, the impugned addition is not sustainable. I direct Ld. AO to delete the same. 4. The appeal sand allowed. Order pronounced on 22 nd February, 2023. Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद7 / ACCOUNTANT MEMBER चे)ई / Chennai; िदनांक / Dated : 22 -02-2023 EDN/- आदेश की Qितिलिप अ3ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु /CIT 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF