KUPPUSAMY SAVITHA,ERODE V. ITO, WARD-2(1), ERODE

ITA 1554/CHNY/2024

AI Insights

The case involves Smt. Kuppusamy Savitha, who appealed against the order of the Commissioner of Income Tax (Appeals) concerning the assessment year 2017-18. The primary issues were the addition of unexplained cash deposits during the demonetization period and discrepancies in declared agricultural income. The Assessing Officer had added Rs.12.24 Lacs as unexplained income and an additional Rs.1.71 Lacs as income from other sources due to underreported agricultural income. The Tribunal reviewed the submissions and documents provided by the assessee, including bank statements and ledger extracts, which indicated business activities not initially reported in the tax return.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29234 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 21-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 22-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHWIN D GOWDA LD.
• Assessee Lawyers: S. BHUPENDRAN LD
• Keywords: Business income
• Section: 143(3); 69

Judgement Text

" आयकर अपीलीय अिधकरण ‘ए’ \u0010ा यपीठ चे\u0015ई म\u0018। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI मा ननीय +ी मनोज क ुमा र अ/वा ल ,लेखा सद4 एवं मा ननीय +ी मनु क ुमा र िग7र, \u0010ा ियक सद4 क े सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं ./ ITA No.1554/Chny/2024 (िनधा 9रणवष9 / Assessment Year: 2017-18) Smt. Kuppusamy Savitha 162, Neithalapuram, Thalavady, Erode-638 461. बना म/ Vs. ITO Ward-2(1), Erode. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. DLOPS-8978-F (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001c कीओरसे/ Appellant by : Shri S. Bhupendran (Advocate) - Ld. AR \u001f थ\u001cकीओरसे/Respondent by : Shri Ashwin D Gowda (Addl.CIT) - Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 21-10-2024 घोषणा की तारीख /Date of Pronouncement : 21-10-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 19-04-2024 in the matter of an assessment framed by the Ld.AO u/s 143(3) of the Act on 16-12-2019. Having heard rival submissions, the appeal is disposed-off as under. 2. The case of the assessee was reopened to verify the cash deposited by her during demonetization period. It was ascertained that 2 the assessee deposited cash of Rs.12.24 Lacs which was added by Ld. AO to assessee’s income as unexplained income u/s 69 in the absence of any satisfactory reply forthcoming from the assessee. Further, as per working, the assessee received agricultural income of Rs.3.50 Lacs only whereas she reflected agricultural income of Rs.5.21 Lacs and therefore, the differential of Rs.1.71 Lacs was separately added as income from other sources. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. 3. From assessee’s paper-book Page Nos.1 to 8, it emerges that the assessee has filed certain responses to Ld. AO during the course of assessment proceedings. With these responses, the assessee furnished various documents which include agricultural income statement and land details, purchase bills, bank statements and ledger extracts. The copies of the same are on record at Page Nos.9 to 80 of the paper-book. Upon perusal of ledger extracts, it could be seen that the assessee has traded in hardware items and carried out sales of Rs.16.58 Lacs in a concern by the name M/s Chandru Hardwares. This entity is registered with VAT authorities since June, 2008. As per cash book of this entity, the assessee is having cash balance of more than Rs.8 Lacs as on 08-11- 2016. The copies of the bank statement are also on record. Apparently, the business receipts have been deposited in the stated bank accounts. However, the assessee has not reflected any business income in the return of income. Therefore, we direct Ld. AO to estimate business income of 20% on sale of Rs.16,58,974/- which comes to Rs.3,31,795/-. The separate addition of cash deposits would stand deleted. 4. The agricultural income as earned by the assessee is to the tune of Rs.3.50 Lacs and the assessee has erred in declaring higher income in 3 the return of income. Therefore, the agricultural income would be assessed at Rs.3.50 Lacs and the balance income of Rs.1.71 Lacs shall be ignored. We order so. 5. The appeal stand partly allowed. Order pronounced on 21st October, 2024. Sd/- (MANU KUMAR GIRI) \u0010ा ियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे2ई Chennai; िदनांक Dated : 21-10-2024 DS आदेशकीNितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु;/CIT Coimbatore. 4. िवभागीय\u001fितिनिध/DR 5. गाड@फाईल/GF "