DY. COMMISSIIONER OF INCOME-TAX, CENTRAL CIRCLE-1, VISAKHAPATNAM vs. KAVYA AVENUES LLP, VISAKHAPATNAM

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ITA 351/VIZ/2025Status: DisposedITAT Visakhapatnam04 September 2025AY 2021-22Bench: SHRI DUVVURU RL REDDY, HON'BLE (Vice President), SHRI S BALAKRISHNAN, HON'BLE (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the addition of on-money receipts was not justified as the cash payments did not belong to the assessee firm. However, the Tribunal agreed with the CIT(A) in allowing telescopic benefit for the unaccounted expenditure.

What were the facts?

During a search operation, unaccounted cash receipts of Rs. 4,31,77,430/- were found related to the sale of flats. The Assessing Officer added this amount as unexplained money and also added Rs. 39,03,970/- as unexplained expenditure.

What were the issues?

Whether the on-money receipts found during the search belong to the assessee and whether unexplained expenditure should be allowed as a telescopic benefit against the un-admitted receipts.

Which sections of the Income-tax Act were involved?

Section 132,Section 143(3),Section 142(1),Section 69A,Section 115BBE,Section 69C

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Appellant: Shri GVN Hari, Advocate
For Respondent: Shri Badicala Yadagiri, CIT(DR)
Pronounced: 04.09.2025

Heard together (2 matters)

ITA No. 351/VIZ/2025
ITA No. 363/VIZ/2025

Read from the judgment's own cause title. This page is filed under one of them.

आदेश की प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/ The Assessee : M/s. Kavya Avenues LLP 7-5-64, Ground Floor Pandurangapuram Visakhapatnam – 530003 Andhra Pradesh 2. राजस्व/ The Revenue : DCIT – Central Circle – 1 5th Floor, Direct Taxes Building MVP Colony, Visakhapatnam – 530017 Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. तिभागीय प्रतततितर्, आयकरअिीिीयअतर्करण, तिशाखािटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गार्ाफ़ाईि / Guard file आदेशािुसार / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

Page No. 12

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