What did the Tribunal hold?

The Tribunal partially allowed the appeal, deleting the addition of Rs. 4 Lacs as the assessee provided supporting bank statements for cash withdrawal. However, the addition of Rs. 1 Lac was confirmed due to lack of supporting evidence.

The assessee deposited Rs. 17 Lacs in their bank account during demonetization, claiming it was an advance for quarry land sourced from bank drawings. The Assessing Officer added the entire amount to the assessee's income.

What were the issues?

Whether the assessee's explanation for the source of cash deposits during demonetization was satisfactory and adequately supported by documentary evidence.

M. Gokulakrishnan vs ACIT | ITAT Chennai 2023

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी महावीर िसंह, उपा ! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा*रण वष* / Assessment Year: 2017-18) Shri M. Gokulakrishnan ACIT, बनाम AM 41/2969, F-4, Roopam Apartments, Non-Corporate Circle-10(1), 14th Main Road, Chennai. / Vs. Anna Nagar West, Chennai-600 040. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AJUPG-8901-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by : Shri A.Srinivasan (CA)-Ld.AR " थ"कीओरसे/Respondent by : Shri D.Hema Bhupal (JCIT)-Ld.Sr. DR सुनवाईकीतारीख/Date of Hearing : 29-11-2023 घोषणाकीतारीख /Date of Pronouncement : 29-11-2023 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 of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 11-07-2023 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 05-12-2019. The only grievance of the assessee is confirmation of addition of Rs.5 Lacs.

The Registry has noted delay of 3 days in the appeal. Considering the period of delay, the delay is condoned and we proceed for adjudication of the appeal. Having heard rival submissions and upon perusal of case record, our adjudication would be as under.

The assessee was found to have deposited cash of Rs.17 Lacs in Bank account during the period of demonetization. It was submitted by the assessee that the amount of Rs.17 Lacs was advanced for acquisition of quarry land. Te amount was sourced from bank drawings. However, the advances were received back in two installments on 02.11.2016 and 06.11.2016 which was deposited in the bank account. However, rejecting the same, Ld. AO added the same to the income of the assessee.

The Ld. CIT(A), upon perusal of cash withdrawals, was satisfied with the explanation to the extent of Rs.12 Lacs. However, it was observed that there was no cash withdrawal of Rs.1 Lacs on 16.03.2016. To explain the remaining Rs.4 Lacs, the relevant bank statement was not furnished. In other words, the impugned addition was restricted to Rs.5 Lacs against which the assessee is in further appeal before us.

The Ld. AR has now furnished bank statement for 05.05.2016 wherein there is cash withdrawal of Rs.4 Lacs. However, the withdrawal of Rs.1 Lacs is not supported. Therefore, we delete the addition to the extent of Rs.4 Lacs and confirm the remaining addition of Rs.1 Lacs.

The appeal stand partly allowed. Order pronounced in open court on 29th November, 2023. (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 / VICE PRESIDENT लेखा सद6 / ACCOUNTANT MEMBER चे8ई Chennai; िदनांक Dated :29-11-2023 DS आदेशकीAितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु@/CIT 4. िवभागीय"ितिनिध/DR 5. गाडEफाईल/GF

M. GOKULAKRISHNAN,CHENNAI vs. ACIT, NON CORP CIRCLE-10(1), CHENNAI

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