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Facts
The assessee's appeal for AY 2012-13 arose from an order related to an assessment framed by the AO u/s 143(3) r.w.s. 147 of the Act. The AO made an addition of Rs.16.87 Lacs on account of cash deposit, which was stated to be from property sale proceeds, but the assessee's share was only Rs.5.32 Lacs. During appellate proceedings, a letter stated the land was sold through a power of attorney, but it was not proven that the entire sale consideration went into the assessee's account with the consent of other co-owners.
Held
The Tribunal noted that the entire sale consideration had not been proven to have been received by the assessee with the consent of other co-owners. Considering the principles of natural justice, the Tribunal decided to provide the assessee another opportunity to substantiate her case.
Key Issues
Whether the addition made by the AO on account of cash deposits from sale of property is justified when the assessee's share was less than the amount deposited, and whether proper opportunity was provided for substantiation.
Sections Cited
143(3), 147
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Income Tax Appellate Tribunal, “C” BENCH, CHENNAI
Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपीलीय अिधकरण “सी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय "ी महावीर िसंह, उपा" एवं माननीय "ी मनोज कुमार अ%वाल ,लेखा सद( के सम । BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा)रण वष) / Assessment Year: 2012-13) Smt. N. Sumathi ITO बनाम/ 39, Kanagasabai Nagar, Ward-2, Vs. Chidambaram-608 001. Cuddalore. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AQQPS-4943-L (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by : None " थ"कीओरसे/Respondent by : Ms. R. Anita (Addl.CIT) -Ld. DR सुनवाईकीतारीख/Date of Hearing : 19-09-2024 घोषणाकीतारीख /Date of Pronouncement : 19-09-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of an order passed by Learned Addl. / Joint Commissioner of Income Tax (Appeals)-5, Mumbai [CIT(A)] on 11-03-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s. 147 of the Act on 27-12-2019. At the time of hearing, none appeared for the assessee. The Ld. Sr. DR, drawing attention to the orders of lower authorities, pleaded for dismissal of the appeal.
From the assessment order, it could be seen that the Ld.AO made addition of cash deposit of Rs.16.87 Lacs. It transpired that the assessee deposited cash of Rs.22.20 Lacs in her bank accounts during this year. The source of the same was stated to be out of sale proceeds of a property. However, upon perusal of sale deed, it was noted that assessee was one of the co-owners and the assessee’s share therein was Rs.5.32 Lacs only. Partially accepting the claim, the differential of these two i.e., Rs. 16.87 Lacs was added to the income of the assessee.
During the appellate proceedings, the assessee submitted a letter of her uncle stating that the land was sold through power of attorney. The Ld. CIT(A), upon perusal of assessee’s submissions, observed that it was not proved that entire sale consideration had flown into the bank account of the assessee through consent of the other three co-owners. The assessee was one of the co-owners only. Accordingly, the addition was confirmed against which the assessee is further appeal before us. 4. Considering the fact of the case and keeping in mind the principle of natural justice, we deem it fit to provide another opportunity to the assessee to substantiate her case. Accordingly, the impugned issue stand restored back to the file of Ld. CIT(A) for fresh adjudication with a direction to the assessee to substantiate her case. 5. The appeal stand allowed for statistical purposes. Order pronounced on 19th September, 2024. (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 / VICE PRESIDENT लेखा सद6 / ACCOUNTANT MEMBER चे8ई Chennai; िदनांक Dated :19-09-2024 DS आदेशकीIितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु@/CIT Chennai. 4. िवभागीय"ितिनिध/DR 5. गाडEफाईल/GF