KADHARMEERA AMJATH,MADURAI V. DCIT NCC1, MADURAI

ITA 754/CHNY/2025

AI Insights

The case revolves around an appeal by Smt. Kadarmeera Amjath against the order of the Addl/JCIT(A)-1, Visakhapatnam, which confirmed the addition of Rs.2,37,000 as unexplained money by the Assessing Officer (AO). The assessee had filed a return declaring 'nil' income for the assessment year 2017-18, which was selected for scrutiny due to cash deposits during the demonetization period. The AO accepted most of the cash deposits as explained but questioned the source of Rs.2,37,000, leading to its addition under section 69A of the Act. The First Appellate Authority upheld this addition, prompting the assessee to appeal to the Tribunal. The Tribunal, after considering the circumstances and the submissions, ruled in favor of the assessee, deleting the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705225 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWIN GOWDA
• Assessee Lawyers: A.G. SATHYANARAYANAN
• Keywords: Gift

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ (एस एम सी), ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ (SMC) BENCH, CHENNAI ᮰ी जॉजᭅ जॉजᭅ, उपा᭟यᭃ के समᭃ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT आयकर अपील सं./ITA No.: 754/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2017-18 Smt.Kadarmeera Amjath, No.13/2, Pulugandi Maniam Lane, Palli Vashal Road, Peraiyur, Madurai – 625 702. PAN: BHAPA 7061H Vs. The Deputy Commissioner of Income Tax, Non-Corporate Circle 1, Madurai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri A.G. Sathyanarayanan, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri Ashwin Gowda, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 03.07.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 04.07.2025 आदेश/ O R D E R This appeal filed at the instance of the assessee is directed against the order of the Addl/JCIT(A)-1, Visakhapatnam dated 06.01.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. ITA No.754/Chny/2025 :- 2 -: 2. The solitary issue raised is whether the First Appellate Authority is justified in confirming the addition made by the AO amounting to Rs.2,37,000/- as unexplained money u/s.69A of the Act. 3. Brief facts of the case are as follows: The assessee is an individual. For the assessment year 2017-18, the return of income was filed on 27.03.2018 declaring ‘nil’ income. The assessment was selected for limited scrutiny to verify the cash deposits made during the demonetization period. During the course of assessment proceedings, assessee was directed to explain the source of cash deposits made totaling to Rs.10,26,500/-. The assessee submitted her explanation that she and her husband was engaged in agricultural activity for the past 40 years and was having agricultural land of 6.3 acres. It was submitted that assessee’s husband was a cardiac patient requiring regular medical care and had accumulated the past savings / gifts from her children. It was submitted that during demonetization period, the entire cash in hand was deposited. The assessee had also given the cash flow statement from March, 2010 to March, 2017. The AO accepts that assessee and her family was having agricultural income and also the fact that assessee’s husband was ITA No.754/Chny/2025 :- 3 -: a cardiac patient who requires constant medical care. The AO after considering the cash flow statement did not accept the opening cash balance of Rs.2,37,000/- and added the same u/s.69A of the Act (accordingly the difference of Rs.7,89,500/- was treated as explained) vide assessment order dated 27.12.2019 passed u/s.143(3) of the Act. 4. Aggrieved by the assessment order, assessee filed appeal before the First Appellate Authority (FAA). The FAA confirmed the addition made by the AO. 5. Aggrieved by the order of the FAA, assessee has filed the present appeal before the Tribunal. The Ld.AR reiterated the submissions made before the Income-tax authorities. 6. The Ld.DR supported the orders of the AO and the FAA. 7. I have heard rival submissions and perused the material on record. Assessee and her husband are senior citizens. Assessee’s husband is a cardiac patient requiring regular medical care. It is also an admitted fact that assessee is the owner of agricultural land of 6.3 acres. Assessee has got grown up children who used ITA No.754/Chny/2025 :- 4 -: to give financial support to take care of the medical necessities of their father. The AO has disbelieved only the opening cash balance of Rs.2,37,000/- and accepted the inflow of cash during the relevant assessment year. It is only natural that family has past savings for the aforesaid amount of Rs.2,37,000/-. Accordingly, I hold the sum of Rs.2,37,000/- is out of past savings and opening cash balance is to be given due credit. Hence, addition made u/s.69A amounting to Rs.2,37,000/- is deleted. 8. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 4th July, 2025 at Chennai. Sd/- (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 4th July, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Madurai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "