SELLAMUTHU JYOTHI,KARUR V. ITO, WARD-1, KARUR

ITA 2035/CHNY/2024

AI Insights

The case involves Sellamuthu Jothi, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) which upheld the addition made by the AO regarding unexplained investment in property for the Assessment Year 2012-2013. The AO had reopened the case under section 148 of the Income Tax Act, 1961, due to the purchase of an immovable property worth Rs.2,61,51,311. The assessee declared a total income of Rs.44,910 under section 44AD, which was treated as invalid by the AO. The main contention was the addition of Rs.6,87,612 as the source of investment in the property was not furnished. The Tribunal, after reviewing the cash flow statement provided by the assessee, concluded that the assessee had adequately explained the source of the investment, leading to the deletion of the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29274 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M.S. DEEPTHA
• Assessee Lawyers: KATHIR
• Section: 148; 44AD

Judgement Text

" आयकर अपीलीय अिधकरण ‘डी’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ (SMC) BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.2035/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2012-2013) Sellamuthu Jothi, No.6, Ganesa Nagar, 3rd, Sengunthapuram, Karur. [PAN: AYHPJ 2819F] Vs. The Income Tax Officer, Ward 1, Karur (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. Kathir, Advocate Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. M.S.Deeptha, JCIT. सुनवाई कȧ तारȣख/Date of Hearing : 15.01.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 27.01.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) The captioned appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] dated 26.06.2024 for Assessment Year 2012-2013. 2. Brief facts are as under: The case of the assessee was reopened vide notice u/s 148 dated 31.03.2019 for AY 2012-13 for the reason that the assessee has purchased an immovable property 2 ITA No. 2035/Chny/2024 for a consideration of Rs.2,61,51,311/- and the same has been registered on 10.06.2011 vide document No.1520/2011. The assessee filed return of her income pursuant to the notice u/s 148 of the Act only declaring total income at Rs.44,910/- u/s 44AD of the Act which was treated by the AO as invalid. During the course of the assessment proceedings assessee submitted computation of income, P&L A/c, Capital A/c, Balance Sheet and copy of the purchase deed in regional language and in English also. However, the AO made an addition of Rs.6,87,612/- on account of non-furnishing of source of investment made in the property to the tune of Rs.6,87,612/- being ‘Land and Improvement’ @ Chita Cottage @ Kodaikanal, D.No.1520/201-(2.60%). The ld. CIT(A) upheld the order of the AO on merits. Now, assessee is in further appeal before us. 3. We have gone through the orders of lower authorities and submissions addressed by the parties before us. Before us the ld. Counsel for the assessee filed cash flow statement for the FY 2011-12. Having perused the cash flow statement, we find that the assessee has total receipts including opening cash balance of Rs.9,22,585/- as on 01.04.2022 was Rs.14,86,418/- and total payments were Rs.8,55,649/- which includes Rs.6,87,612/- as Land & Improvement. The assessee had sufficient cash balance as on 01.04.2011. Therefore, we are of the considered view that the assessee has successfully explained the source of expenses relating to the Land and Improvement. Hence, we delete the addition of Rs.6,87,612/- made by the AO. Since, we have allowed the appeal of the assessee, hence we do not dwelled upon the legal grounds raised and the same are infructuous. 3 ITA No. 2035/Chny/2024 4. In the result, appeal filed by the assessee is partly allowed in terms of our above order. Order pronounced in the open court on 27th day of January, 2025 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 27-01-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "