VIMALABAI,CHENNAI V. ITO, NCW-19(6), CHENNAI

ITA 2599/CHNY/2024

AI Insights

The case revolves around an appeal by Vimalabai against the order of the Learned Commissioner of Income Tax, Appeal, which confirmed the addition of Rs.10,20,000 to her income. This amount represented cash deposits made in her bank account during the demonetization period. The Assessing Officer had initially rejected her explanation that these deposits were from her money lending business, primarily because she filed her return under ITR-I, which is typically for salaried individuals. However, Vimalabai argued that she had been declaring income from her money lending business since 2005-06 and provided substantial evidence including bank statements and profit and loss accounts to support her claim. The Tribunal, after reviewing the evidence, concluded that the deposits were legitimate and part of her business income, thus allowing her appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107242 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: SAMYUKTHA BANUSEKAR
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001f, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2599/Chny/2024 िनधा9रण वष9 /Assessment Year: 2017-18 Vimalabai, No.58/86, 2nd Floor, Pudupet Street, Alandur, Chennai – 600 016. Vs. The Income Tax Officer, Non Corporate Ward-19(6), Chennai. [PAN: AACPV 4108Q] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001f की ओर से/ Appellant by : Ms.Samyuktha Banusekar, Advocate IJथ\u001f की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 26.12.2024 घोषणा की तारीख /Date of Pronouncement : 22.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Lucknow [hereinafter “CIT(A)”] dated 30.08.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 04.12.2019. ITA No.2599/Chny/2024 :- 2 -: 2. The only effective ground of appeal in this appeal of assessee is against confirming the addition of cash deposits of Rs.10,20,000/- in the bank account during demonetization period. 3. The assessee is an individual and filed her return of income showing total income of Rs.2,70,720/-. The case was selected for scrutiny to verify the cash deposit during demonetization period. The assessee has deposited cash of Rs.10,20,000/- in the Central Bank of India, Alandur Branch. The assessee before the A.O has explained that the assessee derives income from money lending business and cash deposit is out of her money lending business and submitted bank statement, profit and loss account and balance sheet in support of her contention. However, the A.O rejected the assessee’s explanation on the ground that the assessee has filed return of income in ITR-I, which is for salary of the assessee. On appeal, the Ld. JCIT(A) has confirmed the addition disregarding the assessee’s explanation. 4. The Ld. Authorized Representative (A.R) of the assessee has argued that the Ld. JCIT(A) and A.O have ignored the fact that the assessee has been showing income from money lending business in the income tax return being filled since 2005-06 and and the cash ITA No.2599/Chny/2024 :- 3 -: deposit is duly recorded in the books of account. The Ld. AR in support of her contention has submitted a copy of profit and loss account and cash book. The Ld. AR has explained that the opening cash balance recorded in the cash book as on 01.04.2016 is Rs.12,57,297/- and the cash balance as on 01.11.2016 is Rs.13,73,547/-. The cash deposit has been made out of the above money which is apparent from the books of account. The Ld. AR therefore, has requested that the addition may be deleted. 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The assessee has submitted a copy of ITR from 2005-06 onwards, where she has been regularly showing income from money lending business. The assessee has also furnished the cash book in which the opening cash balance as on 01.04.2016 is Rs.12,57,297/- and cash balance as on 01.11.2016 is Rs.13,73,547/-. The cash deposit in the bank account during demonetization period is out of the above cash balance which is duly recorded in the books of account. We are therefore of the opinion that the cash deposit is duly ITA No.2599/Chny/2024 :- 4 -: explained and delete the addition made by the AO accordingly. In view of the above, the appeal filed the assessee is allowed. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced on 22nd January, 2025. Sd/- Sd/- (एबी टी. वक\u001f) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 22nd January, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "