SEETA RAMCHANDRA CHHAPPAR,BELAGAVI V. INCOME TAX OFFICER, WARD - 4, BELAGAVI

ITA 320/PAN/2024

AI Insights

The case revolves around an appeal by Seeta Ramchandra Chhapar against the order of the CIT(A) which upheld the addition of Rs. 2,00,000 to her income for the Assessment Year 2017-18 under section 69A of the Income Tax Act. The addition was initially made by the Assessing Officer following the discovery of unexplained cash deposits in the assessee's bank account during the financial year 2016-17. The Tribunal examined the submissions and evidence presented, including the assessee's opening cash balance and earnings from her business, and concluded that the CIT(A) had erred in confirming the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32361 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: VIJAY R CHAPPAR
• Keywords: Set aside
• Section: 143(3); 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.320/PAN/2024 (A.Y. 2017-18) Seeta Ramchandra Chhapar, Plot.No.406,Sri Vijay, Ramteerth Nagar, Belagavi-590016, Karnataka. Vs . ITO-Ward-4, Civil Hospital Road, Belagavi-590001. Karnataka. PAN .No. ABGPC6115R (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by Shri.Vijay R Chappar.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 01.04.2025 घोषणा कȧ तारȣख/Date of Pronouncement 02.04.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of Addl/JCIT(A) prayagraj passed u/sec143(3) and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the addition u/se 69Aof the Act by the Assessing Officer. 2. The brief facts of the case are that, the assesse has filed the return of income for A.Y.2017-18 on 6.07.2017 disclosing a total income of Rs.2,42,111/-. The case was 2 ITA. No.320/PAN/2024 Seeta Ramachandra Chhappar. Belagavi. selected for limited scrutiny under the CASS. The Assessing Officer (AO) based on the information from ITBA data found that, the assesse has made cash deposits in the bank account aggregating to Rs.2,00,000/- in the F.Y.2016-17 and the notice u/sec142(1) of the Act was issued to furnish the details and sources of cash deposits. The assessee has filed the explanations and details mentioning the sources of investments and income earned over the years disclosed in the statement of affairs dealt at Para4 of the order. Whereas the A.O was not satisfied with the explanations and dealt on the provisions of the Act and made addition u/sec69A of the Act of Rs.2,00,000/- and finally assessed the total income of Rs.5,05,110/- and passed the order u/sec 143(3) of the Act dated 10.12.2019. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, findings of the AO and submissions but has dismissed the assesse appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information and submissions filed 3 ITA. No.320/PAN/2024 Seeta Ramachandra Chhappar. Belagavi. in the proceedings. The Ld.AR mentioned that the assesse is having opening cash balance as on 1-04-2016 and the assessment for A.Y.2016-17 was completed under section 143(3) of the Act. The assessee is engaged in conducting stitching classes and the cash deposits in the bank account are out of available opening cash balance and also earnings of the assessee. The Ld.AR substantiated the submissions with the paper book and prayed for allowing the appeal. Per Contra, the Ld.DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The Ld.AR submitted that the CIT(A) has erred in confirming the addition made by the A.O u/sec69A of the Act as the transactions are not supported with the documentary evidences. The Ld.AR explained that the assesse has submitted the details as called for by the revenue authorities. The Ld.AR emphasized that the assesse has filed the information and details mentioning the sources of investments and income earned over the years as disclosed in the statement of affairs. The assesse is having opening cash balance as on 1-04-2016 of Rs.1,42,000/- and the assessment for A.Y.2016-17 was completed under section 143(3) of the Act placed in the paper book and the deposits during the F.Y2016-17 are out of opening cash balance,earnings and past savings. We considering the facts, circumstances and the availability of 4 ITA. No.320/PAN/2024 Seeta Ramachandra Chhappar. Belagavi. opening cash balance and the assessment order of A.Y.2016-17 u/sec143(3) of the Act set aside the order of the CIT(A) and direct the Assessing Officer to delete the addition. And we allow the grounds of appeal in favour of the assessee. 6. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 02.04.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 02/04/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No.320/PAN/2024 Seeta Ramachandra Chhappar. Belagavi. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "