JESSY VIJAYAN PILLAI,THANE vs. INCOME TAX OFFICER - 1(4),THANE, THANE

This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), Delhi [for short 'the CIT(A)] dated 20.02.2024 for the AY 2013-14.

The assessee is an employee of Municipal Corporation of Grater Mumbai and derived income from salary. The assessee filed return of income for AY 2013- Jessy Vijayan Pillai 14 on 22.09.2013 declaring total income of Rs. 5,65,170/-. The AO on going through the computation of income noticed that the assessee has earned a Long Term Capital Gain (LTCG) of Rs. 8,45,573/- and has claimed the same as exempt under section 54 of the Income Tax Act, 1961 (the Act). Based on the details furnished by the assessee, the AO noticed that the property purchased in support of exemption claimed under section 54 of the Act is not in the name of the assessee and accordingly called on the assessee to explain why the exemption cannot be denied. Since the assessee did not furnish any further reply, the AO made an addition of Rs. 19,04,893/- towards LTCG. Further the AO noticed from the perusal of the bank statements filed by the assessee that cash to the tune of Rs. 29,08,500/- is deposited into the Bank A/c. The AO proceeded to treat the entire deposit as addition under section 68 of the Act since the assessee failed to furnish any explanation. On further appeal, the CIT(A) deleted the addition made towards LTCG and with regard to the addition made under section 68 of the Act, the CIT(A) gave partial relied to the assessee by confirming the addition to the tune of Rs. 8,83,500/-. The assessee filed the appeal before the Tribunal against the order of the CIT(A).