THIRUVIAM VIVEKANANDAN,TIRUNELVELI vs. ITO, WARD-5,, CUDDALORE

ITA 1576/CHNY/2025Status: DisposedITAT Chennai17 March 2026AY 2017-18Bench: SHRI S.S. VISWANETHRA RAVI (Judicial Member), SHRI S. R. RAGHUNATHA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the addition of Rs.8,04,450 related to cash deposits handled in connection with Business Correspondent (BC) activities and was not unexplained income, thus deleting this addition. Regarding the Rs.4,41,000 transferred from the spouse, the Tribunal found that while the source of the spouse's deposit wasn't fully substantiated, the banking trail was established, and therefore sustained 50% of the addition (Rs.2,20,500) and deleted the rest. The addition of Rs.41,746 for undisclosed interest income was confirmed.

What were the facts?

The assessee, an individual, filed an appeal against the order dismissing his appeal against an assessment order for AY 2017-18. The Assessing Officer (AO) added cash deposits totaling Rs.9,94,450 and other credits of Rs.20,11,765 as unexplained income. The CIT(A) granted partial relief but sustained additions of Rs.8,04,450 (cash deposits) and Rs.4,41,000 (from spouse), along with Rs.41,746 as undisclosed interest.

What were the issues?

1. Whether cash deposits handled through BC activities constitute unexplained income. 2. Whether transfers from spouse, with some unexplained cash deposits in spouse's account, are to be treated as unexplained income. 3. Whether undisclosed interest income is taxable.

Which sections of the Income-tax Act were involved?

Section 139,Section 143(3),Section 250,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI S.S. VISWANETHRA RAVI & SHRI S. R. RAGHUNATHA

Hearing: 04.02.2026Pronounced: 17.03.2026

PER S. R. RAGHUNATHA, AM :

The present appeal is filed by the assessee against the order dated 24.09.2024 passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “ld.CIT(A)”), dismissing the appeal filed by the assessee against the assessment order dated 16.12.2019 passed u/s.143(3) r.w.s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”

The order continues below.

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