Chandrakumari, Chennai V. ITO NON CORPORATE WARD -3(1), Chennai

ITA 291/CHNY/2023

AI Insights

The case involves an appeal by Chandrakumari against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of \\u20b925,60,000 as unexplained cash deposit during the demonetization period in 2016. The assessee argued that the deposits were from her agricultural and business income, which had been accepted in previous years. The Income Tax Officer had initially assessed her income for the year 2017-18 at \\u20b926,84,000, significantly higher than what she declared. The Tribunal, after considering the evidence and the submissions, partly allowed the appeal, reducing the unexplained amount to \\u20b97,60,000.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135390 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 11-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 06-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 143(3); 143(1); 69A

Judgement Text

आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ SMC BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member आयकर अपील सं./I.T.A. No.291/Chny/2023 िनधाŊरण वषŊ/Assessment Year: 2017-18 Chandrakumari, New No. 66, Old No. 142, Eldams Road, Teynampet, Chennai 600 018. [PAN:AELPC0455J] Vs. The Income Tax Officer, Non Corporate Ward 3(1), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Girish Kumar, Advocate ŮȑथŎ की ओर से/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 12.07.2023 घोषणा की तारीख /Date of Pronouncement : 14.07.2023 आदेश /O R D E R This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi dated 06.01.2023 relevant to the assessment year 2017-18. 2. Brief facts of the case are that the assessee has filed her return of income for the assessment year 2017-18 on 29.07.2017 admitting total income of ₹.5,54,720/- and the same was processed under section 143(1) of the Income Tax Act, 1961 [“Act” in short]. Thereafter, the case was I.T.A. No. 291/Chny/23 2 selected for complete scrutiny. By considering the submissions of the assessee against statutory notices, the Assessing Officer has completed the assessment under section 143(3) of the Act dated 03.12.2019 assessing total income of the assessee at ₹.26,84,000/- by making addition under section 69A of the Act towards unexplained cash deposit of ₹.25,60,000/- during the course of demonetization period. On appeal, the ld. CIT(A) confirmed the addition. 3. On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that besides earning agricultural income and interest income, the assessee has also earned regular business income of TV serial story writing, which was deposited in her bank account not only in current assessment year, but also, various previous years and accepted by the Department in earlier assessment years. Thus, the ld. Counsel for the assessee prayed for deleting the addition made by the Assessing Officer and confirmed by the ld. CIT(A). 4. On the other hand, the ld. DR has submitted that the assessee has not produced any documentary evidence for the source of cash deposited during demonetization period and supported the order passed by the ld. CIT(A). I.T.A. No. 291/Chny/23 3 5. Heard both the sides, perused the materials available on record and gone through the orders of authorities below. On verification of the details furnished by the assessee, the Assessing Officer has noted that the assessee has made cash deposit of ₹.25.6 lakhs during 1011.2016 to 18.11.2016. Since the assessee could not substantiate the source for the above cash deposits with documentary evidence, the Assessing Officer treated the cash deposit of ₹.25,60,000/- as unexplained money under section 69A of the Act, which was confirmed by the ld. CIT(A). 6. The case of the assessee is that the assessee owns agricultural land (punjai land) to the extent of 3.91 hectares and earned agricultural income by carrying out agricultural operations of cultivating mango, coconut, groundnut, paddy, timber, etc. The assessee has also earned income from TV serial story writing since 2014 onwards. The assessee has been regularly filing the returns of income by declaring the above source of incomes, which are duly accepted by the Department in earlier assessment years. In the year under consideration, the assessee has submitted that the income earned by the assessee were retained in cash towards purchase of agricultural inputs such as seeds, fertilizers, pesticides, weedicides, power and irrigation, sale of agricultural produce besides receipt of money for writing story for TV serials and deposited I.T.A. No. 291/Chny/23 4 ₹.25.6 lakhs from 10.11.2016 to 02.12.2016. The assessee has no other source other than the above incomes earned by her. It is also an admitted fact that similar agricultural income and other income declared in the assessment years 2015-16 & 2016-17 are not in dispute. Since the assessee has produced copy of patta and crop adangal of agricultural land owned by her to the extent of 3.91 hectares, the agricultural income earned by the assessee are also not in dispute. The department also not disputed the income earned by way of TV serial story writing for which any documentary evidence can be produced. Considering the above facts and circumstances of the case, in the interest of natural justice, the Assessing Officer is directed to restrict the disallowance to the extent of ₹.15.00 lakhs and the balance amount of ₹.7,60,000/- shall be treated as unexplained money under section 69A of the Act. 7. In the result, the appeal filed by the assessee is partly allowed. Order pronounced on 14 th July, 2023 at Chennai. Sd/- (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 14.07.2023 Vm/- I.T.A. No. 291/Chny/23 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3.आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.