MS. BINU CHRISTEENA,CHENNAI vs. ITO, NON-CORPORATE WARD-15(1), CHENNAI

आदेश / O R D E R

PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the

Learned Commissioner of Income Tax (Appeals)-/NFAC, (hereinafter in

short ‘the Ld.CIT(A)’), Delhi, dated 16.01.2024 for the Assessment Year

(hereinafter in short ‘AY’) 2017-18.

business of real estate and contractor and runs the proprietorship concern

in the name and style of M/s.Dream Assets Promoters ; and the assessee

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is found to have admitted total turnover during the period under

consideration to the tune of Rs.83,85,714/- and out of which, the cash

sales were declared at Rs.9,90,000/- and same was offered to tax under

the provision of Section 44AD of the Income Tax Act, 1961 (hereinafter in

short ‘the Act’) and had filed her Return of Income (hereinafter in short

"ROI") for Assessment Year (AY) 2017-18 on 13.12.2017 admitting

income of Rs.6,04,786/-. Later on, the case of the assessee was selected

for complete scrutiny for AY 2017-18, and the assessee was asked to

furnish certain details as well as reconciliation of Form 26AS with the

income offered in RoI and also the source of cash deposits of Rs.31 lakhs

during demonetization period; and pursuant to which, assessee replied to

the notice of AO; but not satisfied, AO made inter alia addition of Rs.31

lakhs, which was partially confirmed by the Ld.CIT(A) and directed the AO

to only add cash deposit in bank a/c No.91602004068440 with Axis Bank

(current-account) in excess of Rs.9,90,000/- u/s.69A of the Act.

Aggrieved, the assessee is before us against the action of the Ld.CIT(A)

confirming the balance of addition u/s.69A of the Act.

the Ld.CIT(A) on 18.12.2023 which has not been considered properly by

the Ld.CIT(A). In this regard, the assessee urged that she had explained

inter-alia about the source of Rs.12 lakhs which was advance given to her

ITA No.654/Chny/2024 (AY 2017-18) Ms.Binu Christeena :: 3 ::

by Shri Shibu Jacob & Mrs.Simi Thomas, for construction of property at

Neelagiri Village and that project could not fructify, because, there was a

dispute about the ‘title’ of the property which ultimately was compromised

at the level of the Hon’ble Madras High Court and referred to compromise

deed dated 31.10.2022; According to the assessee, the Ld.CIT(A) has not

considered the explanation regarding source of Rs.12 lakhs which is

supported by contemporary evidence. Therefore, the Ld.AR prayed that

one more opportunity may be granted to the assessee for proving the

source of cash deposits in her bank accounts, which has been confirmed

by Ld CIT(A). The Ld.DR opposes the request of the assessee for one

more innings.

to the notice of the Ld.CIT(A) that she is engaged in the business of real

estates and contractor; and that during the relevant year, she had

turnover of Rs.83,85,714/- and out of which, cash sales were to the tune

of Rs.9,90,000/- (which fact has been accepted by the Ld.CIT(A)); and

the Ld CIT(A) has given part relief to the assessee by adjusting

Rs.9,90,000/- in the current account of Axis Bank as explained. However,

the main grievance of assessee is that the Ld.CIT(A) has not considered

the facts that assessee has withdrawn/given cash-cheque in the name of

her husband, which money he has drawn has been was safely kept by him

ITA No.654/Chny/2024 (AY 2017-18) Ms.Binu Christeena :: 4 ::

for emergency use in their business. However, due to demonetization

being declared, the assessee had to deposit the same back in the bank

account. According to the assessee, she was able to prove the source of

the amount deposited in the Axis Bank with bank a/c No. ending in 4440

[which is the current account of the assessee, wherein the Ld.CIT(A) has

accepted Rs.9,90,000/- (out of total Rs 19 lakhs)from business income];

and balance of Rs.12 lakhs cash deposited in account ending with 1732 in

Axis Bank, the assessee had stated in the written submissions as well as

before the AO that she being a contractor/real estate developer had

received Rs 12 Lakhs in cash from her clients, Mr.Shibu Jacob & Ms.Simi

Thomas to construct a property at Neelagiri Village, which she deposited

in her bank account during demonetization period. [According to the

assessee, there was a certain dispute about the title of the property which

finally got settled as per the terms of can enter into Compromise Deed

after intervention of the Hon’ble Madras High Court dated 09.08.2019;

and as per Compromise Deed dated 31.10.2022, land owner of Neelagiri

Village, Shri Pradeep & Others had to return an amount of Rs.2.38 Crs. to

Mr.Shibu Jacob & Ms.Simi Thomas, which amount included the advance

paid to the assessee to the tune of Rs.12 lakhs;] According to the

assessee, even though, these facts were brought to the notice of the

Ld.CIT(A); he has not bothered to look at the contemporary evidences

filed by the assessee which omission vitiates the finding of the Ld.CIT(A)

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for non-consideration of the relevant documents. We find force in the

submission of the Ld.AR, that Ld CIT(A) has not considered the

explanation/contemporary evidences filed by assessee for proving the

source of cash deposits in both bank-accounts. Therefore, we set aside

the impugned order of the Ld.CIT(A) and restore the appeal back to the

file of the Ld.CIT(A) to consider the explanation/written-

submission/contemporary documents/relevant documents filed by the

assessee to show the source of the cash deposited of the assessee

regarding the balance cash of Rs.9,10,000/- (Rs.19,00,000/- minus

Rs.9,90,000/-) in current account/bank account number ending with 4440

in Axis Bank; and Rs.12 lakhs in bank account number ending with 1732

in Axis Bank, and pass order in accordance to law.

Order pronounced on the 05th day of July, 2024, in Chennai.

Sd/- Sd/- (एबी टी. वक�) (अिमताभ शु�ा) (AMITABH SHUKLA) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER चे�ई/Chennai, �दनांक/Dated: 05th July, 2024. TLN, Sr.PS

ITA No.654/Chny/2024 (AY 2017-18) Ms.Binu Christeena :: 6 ::

आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF