KUPPAM THUPAS APPADURAI RAJA SAMPATH KUMAR,VELLORE V. ITO, WARD-3, VELLORE

ITA 2326/CHNY/2024

AI Insights

The case involves an appeal by Kuppam Thupas Appadurai Raja Sampath Kumar against the order of the Learned Commissioner of Income Tax, which confirmed the addition of a cash deposit of Rs. 16,89,000 under section 69A of the Income-tax Act, 1961 during the demonetization period. The assessee, a distributor for Tide Water Oil Co. (India) Ltd., argued that the cash deposit was from business proceeds and recorded in the books of account. However, the Assessing Officer and the CIT(A) found the cash deposit unexplained due to lack of supporting documents like cash book and details of debtors. The Tribunal found that the Assessing Officer had not examined the books of account and provided an opportunity for the assessee to substantiate his claim.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107044 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 04-09-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G. SARATHA
• Assessee Lawyers: P.M. KATHIR
• Keywords: Set aside
• Section: 143(3); 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001e, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2326/Chny/2024 िनधा9रण वष9 /Assessment Year: 2017-18 Kuppam Thupas Appadurai Raja Sampath Kumar, No.9, 16th East Cross Road, Gandhi Nagar, Vellore – 632 006. Vs. The Income Tax Officer, Ward-3, Vellore. [PAN: ALSPS 4641L] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Appellant by : Shri P.M. Kathir, Advocate IJथ\u001e की ओर से /Respondent by : Mrs. G. Saratha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 20.11.2024 घोषणा की तारीख /Date of Pronouncement : 29.11.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 07.08.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 26.12.2019. ITA No.2326/Chny/2024 :- 2 -: 2. The only issue in this appeal of the assessee is against confirming addition of cash deposit of Rs. 16,89,000/- u/s. 69A of the Act during the demonetization period. 3. The assessee is a distributor for Tide Water Oil Co. (India) Ltd. and doing his oil lube business in the name of M/s. KTAR Sampath Kumar at Katpadi. The assessee has deposited cash of Rs. 32,33,000/- during demonetization period which included Specified Bank Notes (SBNs) of Rs. 16,89,000/-. The assessee has explained the cash deposit of SBNs out of cash sales however, the A.O has made the addition u/s. 69A of the Act applying the Human Probability Test that a person who possess a large amount of cash in hand, will deposit the same into the bank account immediately, but the cash deposit was made on various dates. On appeal, the Ld. CIT(A) has confirmed the addition made by A.O on the ground that the assessee’s has not filed necessary documents/evidence in the form of cash book, details of debtors etc. in support of his claim. 4. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that the cash deposit is out of sale proceeds and it has been duly recorded in the books of account. The Ld. AR has submitted that the A.O and Ld. CIT(A) without examining the books of ITA No.2326/Chny/2024 :- 3 -: account has held the cash deposit unexplained and submitted that the assessee should be provided one more opportunity to produce the books of account before the A.O to substantiate his claim. 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The assessee has explained the source of cash deposit in SBNs as proceeds from the business. However, the A.O has not examined the same. In view of the above, we are of the opinion that the assessee should be provided one more opportunity to substantiate his case before A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. ITA No.2326/Chny/2024 :- 4 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 29th November, 2024. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 29th November, 2024. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "