WATER WORKS ENGINEERING,COIMBATORE V. ITO, CORP. WARD-1(1), COIMBATORE

ITA 837/CHNY/2025

AI Insights

The case involves Water Works Engineering, the appellant, contesting the additions made to their income by the Assessing Officer (AO) for the Assessment Year 2018-19. The AO had added amounts to the income of the assessee due to non-provision of confirmations for unsecured loans and advances received, which were deemed necessary to prove the identity, creditworthiness, and genuineness of the transactions. The Commissioner of Income Tax (Appeals) upheld these additions. The tribunal, after considering the additional evidence submitted by the assessee, decided to remand the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793070 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 25-03-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: N.C. RAVIKRISHNAN
• Section: 147; 12

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI माननीय ी मनु क ुमार िग\u0010र, \u0011ाियक सद\u0014 एवं माननीय ी एस.आर.रघुनाथा ,लेखा सद\u0014 क े सम । BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.837/Chny/2025 िनधा\u0005रण वष\u0005/Assessment Year: 2018-19 Water works engineering, No.65-B, Gurusamy Nagar, Thanneer Pandhal, Peelamedu Post, Coimbatore, Tamil Nadu-641 004. [PAN: AABFW6153H] v. The Income Tax Officer, Non-Corporate Ward-1(1), Coimbatore. (अपीलाथ\u000e/Appellant) (\u000f\u0010यथ\u000e/Respondent) अपीलाथ\u000e क\u0012 ओर से/ Appellant by : Mr.N.C.Ravi Krishnan, Advocate \u000f\u0010यथ\u000e क\u0012 ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT. सुनवाईक\u0012तारीख/Date of Hearing : 03.07.2025 घोषणाक\u0012तारीख /Date of Pronouncement : 24.09.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal is filed by the assessee against the order of CIT(A), NFAC, Delhi, dated 23.10.2024 for the Assessment Year-2018-19. 2. Brief facts: The facts of the case are that in assessment, AO noted that the assessee had taken unsecured loan of Rs.18,15,000/-. The assessee was asked to provide details of the parties along with confirmations. No confirmations were provided by the assessee. Accordingly, in the absence of documentary evidence regarding unsecured loans in order to prove the identity, creditworthiness and genuineness of the transactions, the AO added the same to the income of the assessee. In assessment, AO also noticed that the assessee had shown advance received during the year Printed from counselvise.com ITA No.821/Chny/2025(AY-2017-18) Sathyabama Ramachandran :: 2 :: from the party M/s SRM Enterprises Rs.90,41,827/-. In the absence of confirmation from the party, that is, in the absence of documentary evidence regarding advance in order to prove the identity, creditworthiness and genuineness of the transactions, the AO added the same to the income of the assessee. 3. In appeal, the assessee has stated that absence of confirmation from the lender does not render the transaction non-genuine. The ld. CIT(A) treated the contention of the assessee as untenable. Further, the assessee has submitted a printout purportedly from the books of SRM Enterprises showing purported ledger account of Water Works Engineering for AY 2018-19. However, the same is neither signed, nor stamped, nor are any PAN details mentioned thereon. In the absence of confirmations from the party, that is, in the absence of documentary evidence regarding advance in order to prove the identity, creditworthiness and genuineness of the transactions the addition is confirmed by the ld.CIT(A). In the absence of confirmations from lenders, that is, in the absence of documentary evidence regarding unsecured loans in order to prove the identity, creditworthiness and genuineness of the transactions the addition is confirmed by the ld.CIT(A). 4. Before us, the assessee has filed evidences as per index below: S.No. Particulars Page No. 1. Written Submission 01-03 2. Account Copy from SRM Enterprises 04-05 3. Confirmation Letter from SRM Enterprises 06-07 4. Ack for Response to Notice u/s. 147 08-09 5. Ack-1 for Response to Notice u/s. 250 10-11 6. Submission 1 to Notice u/s. 250 12 7. Ack-2 for Response to Notice u/s. 250 13 8. Submission 2 to Notice u/s. 250 14-17 9. Copy of Bank Statement - HDFC A/c No. ending 4772 18-23 10. Copy of Bank Statement - HDFC A/c No. ending 3722 24-34 11. Ledger account copy of AGK Traders 35 12. Ledger account copy of A. Gopinath 36 13. Ledger account copy of Enviro Services 37 14. Copy of Bank Statement HDFC A/c No. ending 3722 [18-19 F.Y.] 38 Printed from counselvise.com ITA No.821/Chny/2025(AY-2017-18) Sathyabama Ramachandran :: 3 :: 5. We find that the above evidences filed goes root to the matter and are necessary for the substantial justice. Hence, we admit the above evidences and remand back the appeal to the file of AO to pass denovo assessment with regard to the issue of unsecured loan and issue of advance received in the light of the aforesaid evidences filed by the assessee. Assessee may file further evidences, if any, and submit explanation with regard to the aforesaid two issues viz; the issue of unsecured loan and issue of advance received. Needless to say, that the AO will provide proper opportunity of hearing to the assessee before proceeding to denovo assessment on two issues referred supra. 6. In result, appeal of the assessee is allowed for statistical purposes. Order pronounced on the 24th day of September, 2025, in Chennai. Sd/- (एस.आर.रघुनाथा) (S. R. RAGHUNATHA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग\u0010र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, दनांक/Dated: 24th September, 2025. LN/- 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकरआयु\u0010/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय ितिनिध/DR 5. गाड\u0019फाईल/GF Printed from counselvise.com "