PANDIYAN ADIYAPATHAM,CHENNAI vs. DCIT/ACIT, CIRCLE 3(3)(1), BANGALORE, BANGALORE

ITA 913/BANG/2026Status: DisposedITAT Bangalore24 September 2026AY 2022-20234 pages
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What did the Tribunal hold?

The Tribunal noted that the assessee's explanations for both additions were not accepted by the lower authorities primarily due to a lack of proper supporting evidence. Specifically, for the Rs. 50,00,000/- addition, the assessee failed to provide confirmations from donors, evidence of their sources, and cash availability. For the Rs. 4,00,020/- addition, documentary evidence linking bank transactions to payments was missing. Before the Tribunal, the assessee explicitly undertook to furnish the required confirmations and documentary evidence. In the interest of substantial justice and to provide one more opportunity to the assessee, the Tribunal set aside the order of the Ld. CIT(A) and restored both issues to the file of the Ld. CIT(A) for fresh adjudication. The assessee is directed to furnish the necessary evidence, and the Ld. CIT(A) is to decide the issues afresh after providing a reasonable opportunity of being heard. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Pandiyan Adiyapatham, filed an appeal against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2022-2023. The Assessing Officer (AO) made additions of Rs. 50,00,000/- under Section 69A for cash deposited in the bank and Rs. 4,00,020/- under Section 69A for payments related to immovable property purchase. The CIT(A) sustained these additions due to a lack of supporting evidence. The assessee's primary explanation for the Rs. 50,00,000/- was gifts from parents and family, along with past savings. For the Rs. 4,00,020/-, the assessee claimed the amount was duly explained but lacked evidence linking bank transactions to payments. The assessee undertook to furnish necessary evidence before the Tribunal.

What were the issues?

1. Whether the addition of Rs. 50,00,000/- under Section 69A of the Income Tax Act, 1961, on account of cash deposits, is justified, considering the assessee's explanation of gifts from parents and family members and past savings, and the lack of supporting evidence? 2. Whether the addition of Rs. 4,00,020/- under Section 69A of the Income Tax Act, 1961, in connection with the purchase of immovable property, is justified, given the assessee's claim of explanation and the absence of documentary evidence linking bank transactions to payments? Assessee's Contention: The assessee argued that the additions were made for want of supporting evidence and undertook to furnish necessary evidence, including confirmations from donors, evidence regarding their source of funds and creditworthiness, and other relevant documents before the Ld. CIT(A) for fresh adjudication. The assessee requested the matter be restored to the Ld. CIT(A). Revenue's Contention: The Revenue, through the Ld. DR, supported the orders of the lower authorities but did not seriously object to the matter being restored to the Ld. CIT(A) for fresh adjudication, considering the assessee's request to furnish supporting evidence.

Which sections of the Income-tax Act were involved?

Section 69A,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI WASEEM AHMED & SHRI SANDEEP SINGH KARHAIL

PER SHRI WASEEM AHMED, ACCOUNTANT MEMBER:

The present appeal filed by the assessee pertaining to A.Y. 2022-23 is directed against the order of the learned Commissioner of Income Tax (Appeals) (hereafter, the Ld. CIT(A)) passed u/s 250 of the Inco

The order continues below.

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