VENKATESAN KALYANASUNDARAM,BANGKOK vs. THE INCOME TAX OFFICER, INTERNATIONAL TAXATION WARD 1(2), CHENNAI, CHENNAI

Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-12-2023 in the matter of an assessment framed by the Ld.AO u/s 147 r.w.s 144C(3) of the Act on 20-05-2022. The sole grievance of the assessee is confirmation of addition of Rs.7.12 Lacs u/s.68 of the Act which represents cash deposits made by assessee in his bank accounts.

The assessee being non-resident did not file return of income. It transpired that the assessee purchased certain property and deposited cash of Rs.2 Lacs in the Bank account. Accordingly, the case was reopened. During assessment proceedings, it was also found that the assessee deposited cash of Rs.7.12 Lacs in his various bank accounts. The assessee submitted that foreign currency earned abroad was brought in India and after conversion thereof, it was deposited in bank accounts. In this year, the assessee visited India 10 times. However, rejecting the same, Ld. AO added the same to the income of the assessee.

During appellate proceedings, the assessee furnished cash flow statements and submitted that the deposits were out of prior withdrawals. However, since there was change in stand, Ld. CIT(A) rejected the explanation of the assessee and confirmed the addition. Aggrieved, the assessee is in further appeal before us. 4. The Ld. AR submitted that the assessee visited India for medical purposes and withdrew money from bank accounts. The hospital insisted on payment though banks and accordingly, the money was re-deposited in bank accounts. The Ld. AR also pleaded the cash flow statement was also furnished before lower authorities to substantiate the claim. The Ld. Sr. DR, on the other hand, pleaded for confirmation of addition. 5. Upon perusal of case records, it could be concluded that the source of cash deposit, to certain extent, was explained by earlier withdrawals. The same was supported by cash flow statement. However, the submissions qua foreign currency could not be accepted. Therefore, we partially accept the claim of the assessee and restrict the impugned addition to the extent of Rs.3 Lacs. The remaining addition of Rs.4.12 Lacs stand deleted. 6. The appeal stand partly allowed. Order pronounced on 3rd July, 2024 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा45 / VICE PRESIDENT लेखा सद7 / ACCOUNTANT MEMBER चे9ई Chennai; िदनांक Dated :03-07-2024 DS आदेशकीJितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयुA/CIT Chennai. 4. िवभागीय�ितिनिध/DR 5. गाडFफाईल/GF