SWAMINATHAN BALASUBRAMANI,CHENNAI vs. ITO INTERNATIONAL TAXATION 2(2), CHENNAI

In this appeal filed by the assessee which is directed an order dated 16.08.2017 of Commissioner of Income Tax (Appeals)-16, Chennai, It is aggrieved on an addition of Rs.25,00,000/- made by the AO for deposits made by the assessee in his bank account which was confirmed by the Ld.CIT(A).

Ld.Counsel for the assessee submitted that the Ld.CIT(A) had dismissed the appeal of the assessee without considering the grounds raised by him. As per the Ld.AR, it was true that the assessee could not appear before the Ld.CIT(A) when the matter was posted for hearing since he was a Non-Resident Indian. However, according to him, assessee has sufficient source for the sum of Rs.25,00,000/- deposited in his bank account with Syndicate Bank. Contention of the Ld.AR that the money was received from assessee’s father Dr. K. Balasubramanyam who had retired from Anna University. As per the Ld.AR, assessee’s mother had given a confirmation for the above, since Dr. K. Balasubramanyam was no more. Contention of the Ld.AR, assessee was not given a fair chance for explaining the deposits.

Per contra, the Ld.DR submitted that despite giving sufficient opportunities, assessee could not furnish any evidence for the source of the deposit made by the assessee in his bank account.

We have heard the rival contentions. It is an admitted fact that the assessee is a Non-Resident Indian. Assessee had cash deposits aggregating to Rs.40,30,000/- in his account No.60212010091040 with Syndicate Bank. Assessee had explained the said deposits as coming out of earlier withdrawals and a sum of Rs.25,00,000/- received by him from his father in cash during the period from August, 2013 to September, 2013. The AO had not accepted the explanation for the sum of Rs.25,00,000/- citing a reason that the assessee was not able to produce any documentary evidence. Ld.CIT(A) had confirmed the addition mainly for the reason that the assessee did not appear on various dates when the matter was posted for hearing. Be that as it may, now before us Ld.AR has produced, a confirmation from Smt.B.Naga wife of Dr. K. Balasubramanyam confirming that latter had given cash of Rs.25,00,000/- to his son. It is also mentioned that Dr. K. Balasubramanyam had passed away in August, 2013. Considering the facts and circumstances of the case, we are of the opinion that the assessee can be given one more chance to explain the source of deposit of Rs.25,00,000/-. We, therefore, set aside the orders of the authorities below and remit the issue back to the AO for consideration afresh in accordance with law.

In the result, the appeal of the assessee is allowed for statistical purposes.