ANNAMUTHU NAVANEETHAN,COIMBATORE vs. ITO, NCW-1(4), COIMBATORE

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ITA 1468/CHNY/2026Status: DisposedITAT Chennai29 July 2026AY 2021-224 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal observed that the assessee lacked proper documentation to explain the cash deposits. Therefore, the matter was restored back to the Assessing Officer to provide a proper cash flow statement.

What were the facts?

The assessee deposited a significant sum of money in bank accounts, claiming it was from cash withdrawals made in the previous assessment year. The assessee did not maintain regular books of accounts to substantiate these claims.

What were the issues?

Whether the assessee provided sufficient explanation for the cash deposits in the bank accounts from previous year's cash withdrawals without maintaining proper books of accounts.

Which sections of the Income-tax Act were involved?

Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: HONOURABLE GEORGE GEORGE K. & SHRI GAGAN GOYAL

Hearing: 02.07.2026Pronounced: 29.07.2026

आयकर अपीलीय अधिकरण ‘बी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI माननीय श्री जॉजज जॉजज के., उपाध्यक्ष एवं श्री गगन गोयल लेखा सदस्य के समक्ष BEFORE HONOURABLE GEORGE GEORGE K., VICE PRESIDENT AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 1468/Chny/2026 ननिाारण वर्ा /Assessment Years: 2021-22 Annamuthu Navaneethan, v. Income Tax Officer, No.2224/1, Trichy Road, Singanallur, Non-Corp Ward-1(4), Coimbatore, Tamil Nadu-641 005. Coimbatore. [PAN: ABCPN6440L] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr. S. Sridhar(Erode), Advocate, Ld. AR प्रत्यर्थी की ओर से /Revenue by : Mr. Biplab Gangopadhyay, JCIT, Ld. DR सुनवाईकीतारीख/Date of Hearing : 02.07.2026 घोषणाकीतारीख /Date of Pronouncement : 29.07.2026 आदेश / O R D E R PER GAGAN GOYAL, AM: This is an appeal preferred by the assessee against the order of Ld. Commissioner of Income Tax (A), / NFAC, (hereinafter referred as the ‘Ld. CIT(A)’), Delhi dated 19.02.2026 for the Assessment Year (hereinafter referred as the ‘AY’) 2021-22.

GROUNDS OF APPEAL 1) The Impugned Order is unjust, unreasonable and bad in law. 2) The learned First Appellate Authority erred in endorsing the findings of the Assessing Officer, as is evident from page 14 of the impugned order. 3) The learned First Appellate Authority erred in sustaining the addition on the ground that there was considerable time gap between cash withdrawal and cash deposit, without giving any sort of finding that the appellant had used the withdrawal elsewhere, which were not available for making cash deposits and for other reasons.

ITA No.1468/Chny/2026 (2021-22) Annamuthu Navaneethan And, for other grounds and reasons that may be adduced later, the Appellant humbly prays that the present appeal may be admitted, duly considered and justice be rendered. 2. The brief facts of the case are that the assessee filed its return of income on 22.12.2021 declaring a total income of Rs. 32, 17, 440/-. The assessee declared income under the head ‘Profit & Gains from business or profession’ amounting to Rs. 22, 90, 045/- and income from other sources Rs. 10, 63, 163/-. The assessee claiming deduction under Chapter VI-A amounting to Rs. 1, 40, 764/-. The assessee also shown agriculture income of Rs. 8, 63, 700/-. Ultimately, the case of the assessee was assessed u/s. 143(3) r.w.s. 144B of the Act after making an addition of Rs. 52.5 lakhs u/s. 69A of the Act. The assessee being aggrieved with this order of the AO preferred an appeal before the Ld. CIT (A) who in turn dismissed the appeal of the assessee. Further aggrieved the assessee preferred the present appeal before us along with the grounds taken.

3.

We have gone through the order of the AO, the order of the Ld. CIT (A) and the submissions of the assessee along with the grounds taken before us. It is observed that during the year under consideration the assessee has deposited a sum of Rs. 44.5 lakhs in City Union Bank and Rs. 8 lakhs in HDFC Bank. To explain the source of the deposits made, the assessee presented details of the cash withdrawals during the assessment year 2020-21 as under:

Date Particulars Cheque No. Cash withdrawal Cash Deposit 12.04.2019 Cheque Self 368 9,00,000/- 15.04.2019 Cheque Self 375 9,00,000/- 16.04.2019 Cheque Self 381 5,00,000/- 20.04.2019 Cheque Self 380 9,00,000/- 22.05.2019 Cheque Self 387 9,00,000/- 24.05.2019 Cheque Self 388 1,00,000/- 27.05.2019 Cheque Self 389 1,50,000/- 20.06.2019 Cheque Self 398 2,00,000/-

ITA No.1468/Chny/2026 (2021-22) Annamuthu Navaneethan

28.06.2019 Cheque Self 400 2,00,000/- 06.07.2019 Cheque Self 401 30,000/- 18.07.2019 Cheque Self 410 1,00,000/- 02.08.2019 Cheque Self 413 60,000/- 14.08.2019 Cheque Self - - 8,00,000/- 15.02.2020 Cheque Self 458 3,00,000/- 21.02.2020 Cheque Self 466 8,00,000/- 27.02.2020 Cheque Self 470 25,000/- 04.03.2020 Cheque Self 472 10,000/- 13.03.2020 Cheque Self 475 3,75,000/- 16.03.2020 Cheque Self 478 7,00,000/- 24.03.2020 Cheque Self 484 1,00,000/- Total 72,50,000/- 4. During the year under consideration the assessee has deposited Rs. 44.5 lakhs in the City Union Bank and Rs. 8 lakhs HDFC Bank account [although the total figure of deposit in the City Union Bank was 46.78 lakhs and Rs. 8.31 lakhs in the HDFC Bank account. But, the Revenue raised question on the figures mentioned (supra)]. The assessee tried to explain the source of these deposits amounting to Rs. 52.5 lakhs out of the total withdrawals in assessment year 2020-21 amounting to Rs. 72.5 lakhs as tabulated (supra). It is further observed that the assessee under consideration is not maintaining any regular personal books of accounts including cash book to substantiate his contention.

5.

Still as the assessee has Rs. 22.90 lakhs as income under the head Profit & Gains of business profession, income from other sources Rs.10.63 lakhs and around Rs. 9 lakhs of agricultural income, in all fairness to both the sides, we deem it fit to give another opportunity to the assessee to come forward with a proper flow statement before the AO. In view of the above, the matter of the assessee is restored back to the file of the AO to reconsider the matter again in the light of cash flow statement prepared by the assessee date wise, explaining each entry of

ITA No.1468/Chny/2026 (2021-22) Annamuthu Navaneethan withdrawal and deposit with a clear vision. The assessee is directed to join the proceedings before the AO with crystal clear explanation and evidences wherever required and possible to be submitted. The grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on the 29th day of July, 2026, in Chennai.

Sd/- Sd/- (जॉजज जॉजज के.) (गगन गोयल) (GEORGE GEORGE K.) (GAGAN GOYAL) उपाध्यक्ष /VICE PRESIDENT लेखा सदस्य/ACCOUNTANT MEMBER चेन्नई/Chennai, ददनाांक/Dated: 29th July, 2026. KB आदेश की प्रततललपप अग्रेपषत/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT, Chennai /Madurai/Coimbatore/Salem 4. पवभागीय प्रतततनधि/DR 5. गार्ड फाईल/GF

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