SUNDARRAJAN VENKATESHKUMAR,NAMAKKAL V. .ITO WARD2, TIRUCHENGODE, TIRUCHENGODE

ITA 2439/CHNY/2024

AI Insights

The case involves Shri Sundarrajan Venkateshkumar, a contractor, who appealed against the order of the Learned Commissioner of Income Tax (Appeals), which confirmed the addition of Rs.13.39 Lacs to his income for the Assessment Year 2017-18. This amount represented cash deposits made during the demonetization period, which the assessee failed to substantiate as sourced from legitimate business receipts. The Tribunal, after considering the submissions, estimated the income on the disputed deposit at 25% and partly allowed the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472426 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 18-09-2024
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T.M. SUGANTHAMALA LD.
• Assessee Lawyers: T.S.LAKSHMI VENKATRAMAN LD
• Keywords: Business income
• Section: 144

Judgement Text

" आयकर अपीलीय अिधकरण ‘बी’ \u0010ा यपीठ चे\u0015ई म\u0018। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI मा ननीय +ी मनोज क ुमा र अ/वा ल ,लेखा सद4 एवं मा ननीय +ी मनु क ुमा र िग8र, \u0010ा ियक सद4 क े सम9। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं ./ ITA No.2439/Chny/2024 (िनधा :रणवष: / Assessment Year: 2017-18) Shri Sundarrajan Venkateshkumar C/o K Ramesh, # 3/65 II, Tirunagar Colony Karuveppampatti P.O., Tiruchengode TK Namakkal Dist. PIN: 637 304. बना म/ Vs. ITO Ward-2, Tiruchengode. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. AGUPV-7438-F (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001c कीओरसे/ Appellant by : Shri T.S. Lakshmi Venkatraman (FCA) - Ld.AR \u001f थ\u001cकीओरसे/Respondent by : Ms.T.M. Suganthamala (Addl.CIT) - Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 12-12-2024 घोषणा की तारीख /Date of Pronouncement : 12-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 28-08-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 30-11-2019. The sole grievance of the assessee is confirmation of addition of 2 Rs.13.39 Lacs. Having heard rival submissions, the appeal is disposed- off as under. 2. During assessment proceedings, it transpired that the assessee deposited cash of Rs.13.39 Lacs in his bank account during demonetization period. It was ascertained that the assessee worked as contractor. Since the assessee failed to establish the source of cash deposit, the same was added to the income of the assessee. The assessee offered income on presumptive basis @8% of total turnover of Rs.74.26 Lacs. 3. The Ld. CIT(A) noted that the amount of cash deposit of Rs.13.39 Lacs was not included in the total turnover. Accordingly, the addition was confirmed. Aggrieved, the assessee is in further appeal before us. The Ld. AR has pleaded for reasonable estimation of income on cash deposit which has been opposed by revenue. 4. It is undisputed fact that the assessee is engaged as contractor and its only source of income is business receipts. Though the assessee contended that the deposits were sourced out of contractual receipts, however, he could not establish the same. Under these circumstances, we estimate income of 25% on impugned deposit of Rs.13.39 Lacs which comes to Rs.3,34,750/-. The impugned addition stand restricted to that extent. The corresponding grounds stand partly allowed. 5. Ld. AR has also stated that the assessee is eligible for deduction under Chapter VIA for Rs.1.50 Lacs. We direct Ld. AO to consider the same. The assessee Is directed to file supporting documents. 3 6. The appeal stand partly allowed. Order pronounced in open court on 12th December, 2024. Sd/- (MANU KUMAR GIRI) \u0010ा ियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे2ई Chennai; िदनांक Dated : 12 -12-2024 DS आदेशकीVितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु;/CIT Salem. 4. िवभागीय\u001fितिनिध/DR 5. गाड@फाईल/GF "