PACHIYAPPAN SELVAN,DHARMAPURI V. ITO, WARD 1, DHARMAPURI

ITA 1833/CHNY/2024

AI Insights

The case involves an appeal by Pachiyappan Selvan against the order of the Learned Commissioner of Income Tax, Appeal, National Faceless Appeal Centre (NFAC), Delhi, which confirmed the addition of cash deposits amounting to Rs.10,52,500 made in SBN notes during the demonetization period under section 69A of the Income-tax Act, 1961. The Assessing Officer had added these deposits to the assessee's income, suspecting them to be unexplained, as they were deposited on various dates within the demonetization period. The Tribunal found that the assessee had provided a logical explanation and supporting documents, including audited books of account, which warranted a re-examination of the case by the A.O.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107271 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 01-07-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: PRASANNA URALA
• Keywords: Business income
• Section: 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी महा वीर िसंह, उपा \u001f एवं \u0019ी जगदीश, लेखा सद' क े सम BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1833/Chny/2024 िनधा :रण वष: /Assessment Year: 2017-18 Pachiyappan Selvan, 30/103, Santhai Pettai Road, Near Broker Office, Dharmapuri-636701 Tamil Nadu. Vs. The Income Tax Officer, Ward-1, Dharmapuri. [PAN: EBGPS 8758J] (अपीलाथ\u0006/Appellant) (\u0007\bयथ\u0006/Respondent) अपीला थG की ओर से/ Appellant by : Shri Prasanna Urala, Advocate (Virtual) IJथG की ओर से /Respondent by : Ms. R. Anita, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 17.10.2024 घोषणा की ता रीख /Date of Pronouncement : 17.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax, Appeal, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.05.2024 confirming the addition of cash deposits made in SBN notes of Rs.10,52,500/- u/s. 69A of the Income-tax Act, 1961 (hereinafter “the Act”). ITA No.1833/Chny/2024 :- 2 -: 2. The AO has made addition of cash deposits of SBN notes during demonetization period from 09.11.2016 to 30.12.2016 in Vijaya Bank, Dharmapuri Bank account of Rs. 10,52,500/- u/s. 69A of the Act on the ground that the assessee has failed to explain the cash deposited on various dates from 10.11.2016 to 30.12.2016 . The Ld. CIT(A) has confirmed the addition stating that the assessee has not given any logical explanation. 3. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that cash deposits were made out of the business receipt and are duly recorded in the books of accounts. The Ld. AR has submitted a copy of books of account in support of his contention. 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. A.O has made the addition applying the human probability test that the assessee should have deposited the cash on single day rather than in piece meal on various dates. The Ld CIT (A) has also confirmed the addition stating that assessee has not given ITA No.1833/Chny/2024 :- 3 -: any logical explanation. Assessee before us has explained that the cash deposit was out of regular business receipt and submitted copy of audited books of account and ledger accounts explaining the source of cash deposit. We are of the opinion that the matter should be restored back to the file of A.O to examine the books of accounts and decide the case on merit. We also direct the assessee to appear before the A.O on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17th October, 2024. Sd/- Sd/- (महा वीर िसंह) (Mahavir Singh) उपा \u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य /Accountant Member चे\u0003ई/Chennai, \u0005दनांक/Dated: 17th October, 2024. EDN/- आदेश क\u0002 \u0003ितिलिप अ\tेिषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "