RAJAGOPAL KARTHIKEYAN,ERODE vs. ITO WARD 2(1), ERODE

ITA 3326/CHNY/2024Status: DisposedITAT Chennai19 May 2025AY 2017-18Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI JAGADISH (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO had not rejected the assessee's books of account, VAT returns, or trade results, and the business operations appeared consistent. Therefore, the cash deposits made during the demonetization period were considered part of trading activities, and the addition made under Section 69A was not warranted.

What were the facts?

The assessee, an individual running a proprietorship, filed their return declaring income from business and house property. The case was selected for scrutiny, and during the demonetization period, the assessee made significant cash deposits. The AO made additions for unexplained investment as the assessee failed to provide satisfactory evidence for the source of these deposits.

What were the issues?

Whether cash deposits made during the demonetization period can be treated as unexplained investment if the business operations are otherwise consistent and evidence for the source of funds is provided.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 142(1),Section 143(3),Section 68,Section 115BBE,Section 44AB,Section 69A,Section 69,Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH

Hearing: 19.03.2025Pronounced: 19.05.2025

आदेश आदेश

PER MANU KUMAR GIRI, JM:

The captioned appeal filed by the assessee is directed against the order of the Ld. Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] dated 04.10.2024 for Assessment Year 2017-18. 2. Brief facts are as follows:-

The assessee is an individual running proprietorship concern in the name of M/s.Boopathiraja Trading filed his return of income on 27.11.2017 declaring income of Rs.3,29,620/- for AY 2017-18 claiming income

The order continues below.

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