VIGNESWARA ENTERPRISES ,CHENNAI V. ITO NCW 10(6), CHENNAI

ITA 458/CHNY/2024

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The case involves M/s. Vigneswara Enterprises, a resident firm engaged in real estate development, appealing against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal pertains to the Assessment Year 2018-19, challenging the addition of Rs.21.38 Lacs as unexplained expenditure under section 69C read with section 115BBE of the Income Tax Act. The addition was initially made by the Assessing Officer (AO) during the assessment proceedings, noting that certain property purchases were incorrectly included in the current year's accounts instead of the previous assessment year. The CIT(A) upheld this addition, leading to the present appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29417 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 21-02-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPTHA LD.
• Assessee Lawyers: LEKHA LD
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अिधकरण “ए” \u000eा यपीठ चे\u0013ई म\u0016। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI मा ननीय \u0019ी महा वीर िसं ह, उपा ! एवं मा ननीय \u0019ी मनोज क ुमा र अ%वा ल ,लेखा सद( क े सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं ./ ITA No.458/Chny/2024 (िनधा )रण वष) / Assessment Year: 2018-19) M/s. Vigneswara Enterprises Flat No.1 & 7, 4th Cross Street, Bakthavatchalam Nagar, Adyar, Chennai-600 020. बना म/ Vs. ITO Non-Corporate Ward-10(6) Chennai. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. AALFV-9726-H (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001cकीओरसे/ Appellant by : Ms. Lekha (CA) - Ld.AR \u001f थ\u001cकीओरसे/Respondent by : Ms. Deeptha (JCIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 01-10-2024 घोषणाकीतारीख /Date of Pronouncement : 09-10-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-12-2022 in the matter of an assessment framed by the Ld. AO u/s 143(3) r.w.s 143(3A) & 143(3B) of the Act on 08-04-2021. In the present appeal, the assessee is aggrieved by confirmation of addition of Rs.21.38 Lacs u/s.69C r.w.s 115BBE of the Act. Having heard rival 2 submissions and upon perusal of case records, the appeal is disposed- off as under. 2. The assessee being resident firm is stated to be engaged in real estate development. During assessment proceedings, it transpired that the assessee purchased immovable properties for total value of Rs.559.99 Lacs. Upon perusal of details as furnished by the assessee, Ld. AO noted that the properties for Rs.21.38 Lacs was purchased during AY 2015-16 (on 01-12-2014) whereas the assessee included the same in the purchase of this year. The purchases were inflated to that extent. Accordingly, the purchases as claimed in this year was disallowed and added to the income of the assessee as unexplained expenditure u/s.69C r.w.s 115BBE of the Act. The Ld. CIT(A) confirmed the same as prior period expenses since the assessee could not establish the source of these purchases. Aggrieved, the assessee is in further appeal before us. 3. The Ld. AR has stated that the plots under consideration were purchased during AY 2014-15 but the same were omitted to be accounted for in the books of accounts. The Ld. AR also submitted that the payment for purchases have been made out of regular books of accounts. Considering the same, we restore this issue back to the file of Ld. AO with a direction to the assessee to substantiate its case. All the issues are kept open. 4. The appeal stand allowed for statistical purposes. Order pronounced on 9th October, 2024 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 / VICE PRESIDENT लेखा सद6 / ACCOUNTANT MEMBER 3 चे8ई Chennai; िदनांक Dated : 09-10-2024 DS आदेशकीIितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु@/CIT Chennai. 4. िवभागीय\u001fितिनिध/DR 5. गाडEफाईल/GF "