VAIRAVAN KAMARAJA, CHENNAI V. DCIT NON CORPORATE CIRCLE-(8)1, CHENNAI

ITA 2724/CHNY/2019

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9633 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 19-10-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 23-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 68; 143(3)

Judgement Text

आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ एवं ŵी जी. मंजुनाथा, लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri G. Manjunatha, Accountant Member आयकर अपील सं./I.T.A. No.2724/Chny/2019 िनधाŊरण वषŊ/Assessment Year: 2015-16 Shri Vairavan Kamaraja, No. 36, First Main Road, Alwarthirunagar, Chennai 600 087. [PAN:AHAPK2551R] Vs. The Deputy Commissioner of Income Tax, Non Corporate Circle 8(1), Chennai 600 034. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri V. Veeraraghavan, Advocate ŮȑथŎ की ओर से/Respondent by : Shri Varuvooru Sreedhar, Addl. CIT सुनवाई की तारीख/ Date of hearing : 20.10.2022 घोषणा की तारीख /Date of Pronouncement : 28.10.2022 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 9, Chennai dated 17.06.2019 relevant to the assessment year 2015-16. 2. Facts are, in brief, that the assessee is an individual, engaged in profession as medical practitioner specializing in the field of Anaesthesiology. For the assessment year under consideration, the assessee filed his return of income by admitting income of I.T.A. No. 2724/Chny/19 2 ₹.20,19,180/-. The case of the assessee was selected for scrutiny through CASS under the category of “limited”. After following due procedure, the Assessing Officer has completed the assessment under section 143(3) of the Income Tax Act, 1961 [“Act” in short] dated 31.12.2017. In the assessment order, the Assessing Officer has noted an amount of ₹.92,42,000/- as a cash credited in the books of the assessee. The assessee was asked to give details about large cash deposit in savings bank account. The assessee’s AR had offered an explanation stating that the amount had been withdrawn and redeposited, but failed to provide any necessary evidence supporting the assessee’s claim. Accordingly, the Assessing Officer has disallowed 50% of the same and treated as income of the assessee as unexplained cash credit being chargeable to tax under the head income from other sources as per section 68 of the Act and the sum of ₹.467,21,000/- so credited was charged to tax. 3. On appeal before the ld. CIT(A), the assessee reiterated same submissions without filing any details in respect of cash deposited and withdrawals. Accordingly, the ld. CIT(A) confirmed the assessment order passed by the Assessing Officer. I.T.A. No. 2724/Chny/19 3 4. On being aggrieved, the assessee is in appeal before the Tribunal. By filing various details in the form of paper book, the ld. Counsel for the assessee prayed that one more opportunity may be afforded to the assessee to substantiate its claim. 5. On the other hand, the ld. DR supported the orders of authorities below. 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Against the amount of ₹.92,42,000/- as a cash credited in the books of the assessee, the Assessing Officer asked the assessee to furnish details. The AR of the assessee has submitted before the Assessing Officer that the amount had been withdrawn and redeposited, but failed to provide any necessary evidence supporting the assessee’s claim. Accordingly, the Assessing Officer disallowed 50% of the same under section 68 of the Act as unexplained cash credit. Before the ld. CIT(A) also, the assessee could not file any details and therefore, the ld. CIT(A) confirmed the assessment order. However, before the Tribunal, by way of paper book, the assessee has furnished the following details: 1. Summary of statement explaining the cash deposits of assessee (Dr. V. I.T.A. No. 2724/Chny/19 4 Kamaraja) from 01.04.2014 to 31.03.2015 – pages 01-36. 2. Copy of statement of Axis Bank account No. 910010011565429 – joint account of assessee and his wife – pages 37-50. 3. Copy of IT return and computation sheet for the assessment year 2015-16 of the assessee – pages 51-60. 4. Copy of statement of Bank of India Account No. 800210310000055 of the assessee - pages 61-78 5. Copy of statement of Punjab National Bank account No. 7435000100017408 – joint account of assessee and his wife – pages 79-94. 6. Copy of IT return and computation sheet of Dr. N. Rajeswari – wife of assessee – pages 95-104. 7. Copy of annual report and auditor’s report of Everest Green Aggro Farms India Private Limited where assessee is the director – pages 105-194. 8. Copy of bank statement of Everest Green Aggro Farms India Private Limited bearing account No. 168502000001234 – Indian Overseas Bank account – pages 195-196. 6.1 Since the assessee has filed the above details for the first time in support of the claim of the assessee, we remit the matter back to the file of the Assessing Officer to verify the details as may be filed by the assessee and decide the issue afresh in accordance with law after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to furnish all the details before the Assessing Officer for verification and deciding the issue. Accordingly, the ground raised by the assessee is allowed for statistical purposes. I.T.A. No. 2724/Chny/19 5 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28 th October, 2022 at Chennai. Sd/- Sd/- (G. MANJUNATHA) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 28.10.2022 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.