DHANARAJA , MADURAI V. ACIT , INTERNATIONAL TAXATION , MADURAI

ITA 681/CHNY/2022

AI Insights

The case involves Shri Dhanaraja, who appealed against the addition of unexplained money amounting to Rs.11.17 Lacs under section 69A of the Income Tax Act, 1961, during the assessment year 2017-18. The addition was initially made following the deposit of Rs.49 Lacs in cash during the demonetization period, which the AO partially accepted as explained through agricultural and rental receipts. The Commissioner of Income Tax (Appeals) upheld the AO's decision, leading to the current appeal. The Tribunal found that the lower authorities did not provide sufficient reasons to reject the full claim of agricultural income, leading to a partial allowance of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134263 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 27-06-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-08-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69A

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.681/Chny/2022 (िनधा*रण वष* / As sessment Year: 2017-18) Shri Dhanaraja 116, Pottapatti Post, Surappatti. Melur Taluk, Madurai Dist. – 625 103. बनाम / V s . ACIT International Taxation, Madurai. थायीलेखासं./जीआइआरसं./PAN/GIR No. A FPP D - 1990-Q (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri D. Anand (Advocate)-Ld.AR थ कीओरसे/Respondent by : Shri D.Hema Bhupal (JCIT)- Ld. DR सुनवाईकीतारीख/Date of Hearing : 28-06-2023 घोषणाकीतारीख /Date of Pronouncement : 04-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole grievance of the assessee in the captioned appeal is addition of unexplained money u/s 69A for Rs.11.17 Lacs. Having heard rival submissions and after perusal of case records, the appeal is disposed-off as under. 2. The impugned addition stem from the fact that the assessee deposited cash of Rs.49 Lacs during demonetization period. In support, the assessee furnished cash flow statement. After considering the same, Ld. AO accepted sources to the extent of Rs.16.55 Lacs out of earlier cash withdrawals, Rs.17 Lacs as agricultural receipts and Rs.4.27 Lacs 2 ITA No.681/Chny/2022 from rental receipts and held that the remaining amount of Rs.11.17 Lacs remained unexplained. Accordingly, the same was added to the income of the assessee. During appellate proceedings, the assessee submitted that it has sufficient cash balance for deposit in the bank which was evident from the cash flow statement. The assessee also averred that it earned agricultural income of Rs.28.50 Lacs out of which only Rs.17 Lacs was accepted by Ld. AO. However, Ld. CIT(A) chose to confirm the impugned addition against which the assessee is in further appeal before us. 3. We find that no cogent reasons have been stated by lower authorities to reject the claim of the assessee regarding agricultural income. Only partial claim has been accepted. Considering the factual matrix, we accept further source to the extent of Rs.5 Lacs and sustain the remaining addition of Rs.6.17 Lacs. The Ld. AO is directed to recompute the income of the assessee. 4. The appeal stands partly allowed in terms of our above order. Order pronounced on 4 th July,2023 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा56 / VICE PRESIDENT लेखा सद8 / ACCOUNTANT MEMBER चे:ई Chennai; िदनांक Dated :04-07-2023 DS आदेश की Aितिलिप अ &ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF