SYED ABDUL CADER,CHENNAI V. COMMISSIONER OF INCOME TAX APPEAL, NFAC DELHI

ITA 1794/CHNY/2024

AI Insights

This case involves an appeal by Syed Abdul Cader against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, which confirmed an addition of Rs.8,54,000/- to the assessee's income for the assessment year 2017-18. The addition was initially made by the Assessing Officer under section 143(3) of the Income Tax Act, citing the assessee's failure to justify the source of cash deposits made during the demonetization period. The Tribunal heard the appeal, considering the explanations and evidence provided by the assessee, including the linkage of the deposits to past withdrawals and income from air ticketing services. The Tribunal found merit in the assessee's arguments and evidence, leading to the partial allowance of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34486 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHEILA PARTHASARTHY
• Assessee Lawyers: D.ANAND
• Keywords: Set aside
• Section: 143(3)

Judgement Text

"Page - 1 - of 4 आयकर अपीलीय अधिकरण, ‘बी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1794 /Chny/2024 निर्ाारण वर्ा /Assessment Years: 2017-18 Syed Abdul Cader, Old No.7, New No.15, 1st Floor, Ebrahim Sahib, 2nd Lane, Mannady, Chennai-600001. [PAN: AADPC7099J] Income Tax Officer, Non Corp, Ward-12(1), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri D.Anand, Advocate प्रत्यर्थी की ओर से /Revenue by : Ms.Sheila Parthasarthy, Addl.CIT सुिवाई की तारीख/Date of Hearing : 02.12.2024 घोर्णा की तारीख /Date of Pronouncement : 22.01.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2023-24/1060039730(1) dated 23.01.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2017- 18. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 23.01.2024 passed by NFAC, Delhi. 2.0 It has been noted that there is a delay of 114 days in the case, in filing of this appeal before the tribunal. In its affidavit the assesse has pleaded that it did not receive the appellate order of the Ld.CIT(A) which was electronically transmitted, as a result of which he was not aware of it. ITA No.1794/Chny/2024 :- 2 -: Page - 2 - of 4 Subsequently in interaction with his Chattered Accountant in June-2024 it learnt about the passage of the order and proceeded to file this appeal. All these activities contributed to the delay which was neither willful nor wanton. The assesse submitted that there will not be case of any non- compliance now. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 The only issue raised by the assessee through its grounds of appeal are regarding an addition of Rs.8,54,000/- made by the Ld. AO and which has been confirmed by the Ld.CIT(A). The Ld. Counsel for the assessee informed that the Ld. AO has passed order u/s 143(3) dated 31.12.2019 in its case making the impugned additions. The assessee carrying on the business of foot wear trading, property rentals, air ticketing etc had submitted that the cash deposits of Rs. 8,54,373/- made by it during the demonetization period have direct connection with its past withdrawals and income from air ticketing etc. According to the Ld.AO the assessee failed to produce his books of accounts, bills and vouchers before the Ld. AO to justify the source of cash deposits. ITA No.1794/Chny/2024 :- 3 -: Page - 3 - of 4 4.0 We have heard rival submissions in the light of material available on records. The Ld. Counsel for the assessee submitted that the entire cash deposits has been recorded in its books of accounts and are sourced through past withdrawals or air ticketing services and hence they are all genuine. The Ld. DR would like to rely upon the order of the Ld.AO. From page 10 of the Ld.CIT(A)’s order, we have noted that of the total addition of Rs.13,98,500/-, the Ld. CIT(A) confirmed addition only to the extent of Rs.8,54,373/- and deleted the balance of Rs. 5,47,127/-. The amount confirmed of Rs.4 lakhs claimed to have been withdrawn in July-2016 and Rs.2,52,873/- being ticket booking advance amount. We have noted that the impugned confirmations by the Ld.CIT(A) is merely based upon his theory of human probability and therefore cannot be accepted. The assessee is admittedly doing the business of air ticketing and the same has not been doubted by the Revenue. The hypothesis of non-linkage of withdrawal of Rs. 4 lakhs with deposits in demonetization period also appears to be incorrect given the fact that there is only a short time frame of about three months. Consequently, we set aside the order of the Ld.CIT(A) to the extent of confirming the addition of Rs. 4 lakhs and Rs. 2,52,873/- and direct the Ld.AO to delete the additions. Accordingly, all the grounds of appeal raised by the assessee are partly allowed. ITA No.1794/Chny/2024 :- 4 -: Page - 4 - of 4 5.0. In the result, the appeal of the assessee is partly allowed. Order pronounced on 22nd , January-2025 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्यानयक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 22nd , January-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "