MEENA RAMANATHAN,TIRUCHIRAPALLI V. ACIT, CIRCLE-3(1), TIRUCHIRAPALLI

ITA 2453/CHNY/2024

AI Insights

The case involves an appeal by Smt. Meena Ramanathan against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which upheld the additions made by the Assessing Officer under sections 143(3) read with section 254 of the Income Tax Act. The additions pertained to sundry creditors amounting to Rs. 18.54 lakhs and unexplained deposits of Rs. 16 lakhs. The Tribunal examined the documents and explanations provided by the assessee, including ledger extracts and confirmation letters, and found them satisfactory to negate the additions made by the lower authorities.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29451 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D. KOMALI KRISHNA LD
• Assessee Lawyers: N. ARJUN RAJ LD
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अिधकरण “बी” \u000eा यपीठ चे\u0013ई म\u0016। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI मा ननीय \u0019ी मनोज क ुमा र अ वा ल ,लेखा सद# एवं मा ननीय \u0019ी मनु क ुमा र िग'र, \u000eा ियक सद# क े सम(। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं ./ ITA No.2453/Chny/2024 (िनधा )रण वष) / Assessment Year: 2016-17 Smt. Meena Ramanathan 10, 3rd Street, Sundar Nagar, Tiruchirappalli-620 021. बना म / Vs. ACIT Circle-3(1) Trichy. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. AAHPR-7264-E (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri N. Arjun Raj (Advocate) - Ld.AR थ कीओरसे/Respondent by : Ms. D. Komali Krishna (CIT) - Ld. DR सुनवाई की तारीख/Date of Hearing : 19-12-2024 घोषणा की तारीख /Date of Pronouncement : 31-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 02-08-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s 254 of the Act on 28-03-2024. The assessee is aggrieved by confirmation of addition of sundry creditors and addition on unexplained deposits. Having heard rival submissions, the appeal is disposed-off as under. 2 2. On the issue of sundry creditor balance of Rs.18.54 Lacs, it was stated that this amount was due to the assessee’s husband Shri N. Ramanathan and it was only an opening balance. There was no transaction during the year. In support, ledger extracts were furnished along with a letter from Shri Ramanathan. On the issue of deposits as stated to be received from Sri Narayana Industries Yarn P. Ltd., it was stated that the deposits were outstanding from earlier years and the balance represent opening balance only. The confirmation and ledger extract was furnished in support of the same. However, Ld. AO rejected the same and added both the amounts to the income of the assessee. The Ld. CIT(A) upheld the same against which the assessee is in further appeal before us. 3. So far as the loan creditor is concerned, we find that the balance of Rs.18.54 Lacs is due by the assessee to her husband. Upon perusal of ledger extract as placed on Page No.9, it is evident that substantial amount has been outstanding since 01-04-2010 and there are small receipts of Rs.0.66 Lacs during this year. Therefore, entire amount could not be added as assessee’s income for this year. Even otherwise, the assessee has placed on record ledger extracts and confirmation letter which cannot be rejected on mere suspicion. Accordingly, this addition is not sustainable. 4. So far as the deposit of Rs.16 Lacs is concerned, the ledger extract would similarly show that this amount is outstanding since FY 2010-11. The same represent rental deposits to the assessee. This amount is reflected in the financial statements of Sri Narayana Industrial Yarns P. Ltd. as placed on record along with its return of income. Therefore, in the 3 absence of any contrary finding, this addition is also not sustainable. We order so. 5. The appeal stand allowed in terms of our above order. Order pronounced on 31st December, 2024 Sd/- (MANU KUMAR GIRI) \u000eा ियक सद# / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद# / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 31-12-2024 DS आदेशकी@ितिलिपअ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु=/CIT Madurai. 4. िवभागीय ितिनिध/DR 5. गाडBफाईल/GF "