MRS.PUNITHA GANESAN,THANJAVUR V. ITO, WARD-1(1), THANJAVUR

ITA 2474/CHNY/2025

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The case involves Mrs. Punitha Ganesan, an individual and managing trustee of K.Nadimuthu Memorial Educational Trust, who faced scrutiny over her income tax returns for the assessment year 2023-24. The Income Tax Department questioned the sale consideration of properties and unexplained credits in her bank accounts, leading to additions to her income. The Commissioner of Income Tax (Appeals) partially upheld these additions, leading to appeals by both the assessee and the revenue. The Tribunal found that the issues require a detailed examination of the transactions between the assessee and the Trust, necessitating a remand to the AO for a comprehensive review.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826442 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2023-2024
• Appeal Filed On: 08-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS; C.I.T
• Assessee Lawyers: N. ARJUN RAJ; J. PRASANNA KUMAR; ADVOCATES
• Keywords: Set aside; Opportunity of being heard; Reasonable cause; Corroborative evidences; Unexplained cash credit

Judgement Text

" आयकर अपील य अ धकरण, ‘बी’ \u000fयायपीठ, चे\u000fनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI \u0016ी एबी ट वक\u001a, \u000fया\u001bयक सद य एवं \u0016ी एस. आर. रघुनाथा, लेखा सद य क े सम% BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:2474 /Chny/2025 \u001bनधा&रण वष& / Assessment Year: 2023-24 Mrs. Punitha Ganesan, 21, Pudukkottai Road, Nadimuthu Nagar, Thanjavur – 613 005. vs. ITO, Ward -1(1), Thanjavur. [PAN: AIXPP-6535-A] (अपीलाथ(/Appellant) ()*यथ(/Respondent) आयकर अपील सं./ITA No.: 2564/Chny/2025 & C.O.No.91/Chny/2025 (in ITA No.: 2564/Chny/2025) \u001bनधा&रण वष& / Assessment Year: 2023-24 DCIT, Central Circle -2(1), Thanjavur. vs. Mrs. Punitha Ganesan, 21, Pudukottai Road, Nadimuthu Nagar, Thanjavur – 613 005. (अपीलाथ(/Appellant) [PAN:AIXPP-6535-A] ()*यथ(/Respondent/ Cross Objector ) Assessee by : Shri. N. Arjun Raj & Shri. J. Prasanna Kumar, Advocates Department by : Shri. Shiva Srinivas, C.I.T. सुनवाई क+ तार ख/Date of Hearing : 17.12.2025 घोषणा क+ तार ख/Date of Pronouncement : 05.01.2026 Printed from counselvise.com 2 ITA Nos.2474 & 2564/Chny/2025 & CO No.91/Chny/2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM: These appeals filed by the assessee and revenue and cross objections filed by the assessee are directed against the order of the learned Commissioner of Income Tax (Appeals), Chennai, (in short “ld.CIT(A)”) for the assessment year (A.Y.) 2023-24, vide order dated 25.07.2025. Since facts are identical and issues are common, for the sake of convenience, these appeals filed by the assessee and revenue are being heard together and disposed of by this consolidated order. 2. At the outset, it is observed that there is a delay of 22 days in the filing of the Cross-Objections by the assessee, for which the assessee has filed affidavit stating the reasons for delay. Upon due consideration of the submissions made by both the parties, and having regard to the facts and circumstances of the case, we are satisfied that the assessee was prevented by reasonable cause from filing the Cross-Objections within the time prescribed under the statute. Accordingly, in the interest of justice and equity, the delay in filing the Cross-Objections is hereby condoned, and the Cross-Objections are admitted for adjudication on merits. 3. Brief facts of the case are that the assessee is an individual, eloquent motivating speaker for students for excellence in their studies and deriving income from speeches, counselling students, writing books and articles. She is a managing trustee for K.Nadimuthu Memorial Educational Trust. The assessee had filed her return of income for A.Y. 2023-24 on 15.11.2023 by declaring a total income of Rs.11,10,760/- apart from net agricultural income of Rs.4,12,500/-. The case was selected for Complete scrutiny assessment under CASS to verify the sale consideration of property reported by the assessee in Schedule CG of ITR as the same is substantially less than the sale consideration of the property reported by concerned Sub Registrar of Printed from counselvise.com 3 ITA Nos.2474 & 2564/Chny/2025 & CO No.91/Chny/2025 properties in statement of financial transaction. Further, the AO issued statutory notices to the assessee calling for details and documents to complete the assessment. During the course of assessment proceedings, the assessee filed some of the details and documents but did not file any reply to the show cause notice dated 10.02.2025 issued by the AO to respond before 17.02.2025, for the following variations observed: - Sale of immovable property for Rs.21,67,500/- claimed as agricultural land sold but the SRO, Budalpur mentioned as Non-agricultural land - Regarding sale of immovable property for Rs.11.63 crore, the assessee claimed that the property transaction belongs to K.Nadimuthu Memorial Educational Trust but did not file the financials and return of income of the Trust. The issued notice u/s.133(6) and obtained the details of the Trust and accepted that the said transaction as explained. - Regarding excess credit found in the bank, the assessee claimed that the parents of the students of Trust have deposited these credits and the same is belongs to the Trust. - In respect of Secured loans of Rs.33.00 lakhs, the assessee stated that the loan has been taken from Sh.Muruganandham but not provided a copy of ITR of the same. 3.1 However, on perusal of the submissions and replies filed by the assesse, the AO was not satisfied and concluded the assessment with the available details by passing an order dated 05.03.2025 u/s.143(3) of the Act by making the following additions to the returned income. - Unexplained Short term capital gain Rs. 21,67,500/- - Unexplained Credits found in Bank accounts Rs.6,83,19,376/- - Unexplained Unsecured loans Rs. 33,00,000/- 4. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC, Delhi on 05.04.2025. Printed from counselvise.com 4 ITA Nos.2474 & 2564/Chny/2025 & CO No.91/Chny/2025 5. On perusal of the submissions and documents filed by the assessee, the ld.CIT(A) deleted the additions of bank credits of Rs.6,17,29,376/- stating that the Trust has declared the huge fee collection and hence the same is not taxable in the hands of the assessee. Further, the cash deposit of Rs.65,90,000/- has been confirmed as unexplained income in the hands of the assessee. In respect of sale of agricultural land, the ld.CIT(A) stated the SRO has clearly stated that the immovable property is non-agricultural land and hence confirmed the addition of Rs.21,67,500/-. The unsecured loans to the tune of Rs.33,00,000/-, the ld.CIT(A) has confirmed the addition, since the assessee failed to prove the credit worthiness, genuineness and identity of the lenders by passing an order dated 25.07.2025. 6. Aggrieved by the order of the ld.CIT(A), the assessee as well as revenue before us. 7. The ld.AR submitted that the assessee has deposited cash into her account on behalf of the trust receipts and the same have been spent by the assessee towards trust expenses. Further, the unsecured loans received have been supported by the evidence and hence prayed for deleting the same by setting aside the order of the ld.CIT(A). In support of the transactions of deposit considered and allowed by the ld.CIT(A), the ld.AR stated that these transactions are supported by the trust records and books of accounts. The ld.AR filed a detailed paper book consisting of 268 pages containing financial statements of the assessee, statement of bank accounts of the assessee (Page 9 to 61 of PB), Property documents and replies filed before the AO, details and documents of the Trust accounts, Income tax returns etc. Further, the ld.AR submitted that these transactions are to be reconciled and provided between the assessee and the trust and hence prayed for setting aside the order of the ld.CIT(A) and remit the matter to the AO for verification and decide the issues in accordance with law. Printed from counselvise.com 5 ITA Nos.2474 & 2564/Chny/2025 & CO No.91/Chny/2025 8. Per contra, the ld.DR submitted that the ld.CIT(A) has deleted the bank deposits of the assessee to the tune of Rs.6.17 Crores without any justification, merely considering the bank statement of the assessee. Therefore, the order of the ld.CIT(A) is erroneous and prayed for setting aside the order of the ld.CIT(A) and restore the order of the AO. 9. We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities and examined the paper book filed by the assessee. It is evident that substantial additions have been made and partly deleted primarily on the basis of explanations relating to transactions between the assessee and the Trust. We find that the core issue running through all the additions relates to the proper identification and reconciliation of transactions between the assessee in her individual capacity and the Trust, of which she is the Managing Trustee. 10. The assessee has produced voluminous material, including bank statements, Trust accounts and returns of income, which admittedly were not comprehensively examined by the AO due to non-compliance at the assessment stage. 11. At the same time, we note that the ld. CIT(A) has deleted major additions relating to bank credits without a detailed verification exercise or a remand report from the AO. Considering the magnitude of the amounts involved and the inter-linkage of issues, we are of the view that the matter requires a holistic and thorough examination at the level of the AO. In the interest of justice and fair play, we deem it appropriate to set aside the entire matter to the file of the AO for fresh adjudication. The AO is directed to examine and reconcile the bank transactions of the assessee with the books and accounts of the Trust, verify the nature and source of cash deposits and credits found in the assessee’s bank accounts, re-examine the claim Printed from counselvise.com 6 ITA Nos.2474 & 2564/Chny/2025 & CO No.91/Chny/2025 regarding sale of agricultural land in accordance with law, after giving the assessee an opportunity to produce supporting evidence, verify the unsecured loans by examining the identity, creditworthiness of the lender and genuineness of the transaction. 12. The AO shall afford adequate opportunity of being heard to the assessee and shall consider all documents and explanations that may be furnished. The assessee is also directed to fully cooperate and furnish all necessary details as called for without seeking unnecessary adjournments. 13. In the result, Cross appeals filed by the assessee and Revenue and Cross objection filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 05th January, 2026 at Chennai. Sd/- Sd/- (एबी ट वक\u001a ) (ABY T VARKEY) \u000fया\u001bयक सद य/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद य/Accountant Member चे\u000fनई/Chennai, .दनांक/Dated, the 05th January, 2026 SP आदेश क+ )\u001bत0ल1प अ2े1षत/Copy to: 1. अपीलाथ(/Appellant 2. )*यथ(/Respondent 3.आयकर आयु3त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 1वभागीय )\u001bत\u001bन ध/DR 5. गाड& फाईल/GF Printed from counselvise.com "