KUPPAM THUPAS APPADURAI RAJA SAMPATH KUMAR,VELLORE vs. ITO, WARD-3,, VELLORE
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 07.08.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 26.12.2019.
ITA No.2326/Chny/2024 :- 2 -:
The only issue in this appeal of the assessee is against
confirming addition of cash deposit of Rs. 16,89,000/- u/s. 69A of the
Act during the demonetization period.
The assessee is a distributor for Tide Water Oil Co. (India) Ltd.
and doing his oil lube business in the name of M/s. KTAR Sampath
Kumar at Katpadi. The assessee has deposited cash of Rs.
32,33,000/- during demonetization period which included Specified
Bank Notes (SBNs) of Rs. 16,89,000/-. The assessee has explained
the cash deposit of SBNs out of cash sales however, the A.O has
made the addition u/s. 69A of the Act applying the Human Probability
Test that a person who possess a large amount of cash in hand, will
deposit the same into the bank account immediately, but the cash
deposit was made on various dates. On appeal, the Ld. CIT(A) has
confirmed the addition made by A.O on the ground that the assessee’s
has not filed necessary documents/evidence in the form of cash book,
details of debtors etc. in support of his claim.
The Ld. Authorized Representative (A.R) of the assessee before
us has submitted that the cash deposit is out of sale proceeds and it
has been duly recorded in the books of account. The Ld. AR has
submitted that the A.O and Ld. CIT(A) without examining the books of
ITA No.2326/Chny/2024 :- 3 -:
account has held the cash deposit unexplained and submitted that the
assessee should be provided one more opportunity to produce the
books of account before the A.O to substantiate his claim.
The Ld. Departmental Representative (DR), on the other hand,
has relied on the orders of lower authorities.
We have heard the rival submissions, and perused the materials
available on record. The assessee has explained the source of cash
deposit in SBNs as proceeds from the business. However, the A.O
has not examined the same. In view of the above, we are of the
opinion that the assessee should be provided one more opportunity to
substantiate his case before A.O. Accordingly, we set aside the orders
passed by the A.O and the Ld. CIT(A) and remit the matter back to the
file of the A.O to adjudicate this appeal afresh in accordance with law.
We also direct the assessee to appear before the A.O on the date of
hearing without fail and furnish complete details for his fresh
consideration. In view of the above, the appeal filed by the assessee is
allowed for statistical purposes.
ITA No.2326/Chny/2024 :- 4 -:
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 29th November, 2024.
Sd/- Sd/- (एबी टी. वक�) (जगदीश) (Jagadish) (ABY. T. Varkey) लेखा सद! /Accountant Member �ाियक सद! / Judicial Member चे�नई/Chennai, �दनांक/Dated: 29th November, 2024. EDN/- आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु�/CIT, Chennai 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF
