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Income Tax Appellate Tribunal, ‘B’ (SMC
Before: SHRI MAHAVIR SINGH
आयकर अपील सं./ITA No.: 1478/CHNY/2023 िनधा"रण वष"/Assessment Year: 2017-18 Shri Kondichetty The Income Tax Officer, Venkataswamy Janarthanam, Vs. Non-Corporate Ward 4(2), Old No.26, New No.28, Chennai. Kattabomman 7th Street, Kodungaiyur, Chennai – 600 118. PAN: AAKPJ 1304Q (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Shri D. Anand, Advocate ""यथ" क" ओर से/Respondent by : Shri D. Hema Bhupal, JCIT सुनवाई क" तारीख/Date of Hearing : 21.02.2024 घोषणा क" तारीख/Date of Pronouncement : 21.02.2024 आदेश/ O R D E R This appeal by the assessee is arising out of the order of the Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in Order No.ITBA/NFAC/S/250/2023- 24/1057232243 (1) dated 19.10.2023. The assessment was framed by the Income Tax Officer, Non-Corporate Ward 4(2), Chennai for the assessment year 2017-18 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 28.12.2019. :- 2 -: 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of AO in making addition of cash deposit made during demonetization period in specified bank notes u/s.69 of the Act as unexplained money. For this, assessee has raised various grounds which are argumentative, factual and hence need not be reproduced.
Brief facts are that the assessee is a real estate broker earning commission income and also declaring agricultural income. The assessee filed his return of income for the relevant assessment year 2017-18 on 20.07.2017 declaring total income at Rs.4,08,140/-. The assessee’s case was selected for scrutiny through CASS for the reason that the assessee has deposited cash amounting to Rs.11,00,000/- during demonetization period from 09.11.2016 to 30.12.2016 in his current account maintained with the following banks:- S.No. Bank Cash deposit 1. ICICI bank Rs.6,00,000/- A/c No.-190205000368 2. ICICI bank Rs.5,00,000/- A/c. No.-190205000481 Total Rs.11,00,000/- The AO asked the source of cash deposit of this Rs.11,00,000/-. The assessee explained that the cash deposit of Rs.11,00,000/- :- 3 -: made during demonetization period is out of previous cash withdrawals but the AO has not accepted the explanation of assessee and added this amount of Rs.11,00,000/- as unexplained money u/s.69 of the Act and taxed the same at the rate of 60% as provided u/s.115BBE of the Act. Aggrieved, assessee preferred appeal before CIT(A).
The assessee before CIT(A) contended that he has cash withdrawal of Rs.23.30 lakhs during the period 01.04.2016 to 08.11.2016 and Rs.3.20 lakhs during the period 09.11.2016 to 31.12.2016. The assessee before CIT(A) submitted the cash receipts and payments made during the period 01.04.2016 to 08.11.2016 as under:-
Receipts Amounts Payments Amounts Opening Balance 1,23,988.00 Amount Deposited in Bank -From 01.04.2016 to 08.11.2016 3,57,000.00 -From 09.11.2016 to 31.12.2016 6,50,000.00 Withdrawals from Bank -From 01.04.2016 to 08.11.2016 23,30,000.00 (Refer Annexure : 1) Amount Deposited in Jewel Loan 5,00,080.00 -From 09.11.2016 to 31.12.2016 3,20,000.00 Drawings 59,500.00 (Refer Annexure : 2) Sundry Expenses 6,420.00 Consultancy Charges Receipts 4,15,760.00 Advances 9,12,800.00 Interest Receipts 63,500 Construction Expenses 2,53,000.00 Closing Balance 5,14,528.00 32,53,248.00 32,53,248.00 :- 4 -: The CIT(A) required the assessee to file cash book for the period 31.03.2015, 31.03.2016 so that he can verify the cash withdrawals. The assessee before CIT(A) filed the bank statements and also details of cash withdrawals from ICICI bank along with statements of ICICI bank. But the CIT(A) was of the view that non-production of books of accounts, the assessee is unable to satisfactorily explain the cash withdrawals which claimed to have been deposited which depositing cash during demonetization period of Rs.11 lakhs. Hence, he dismissed the appeal of assessee. Aggrieved, assessee is in appeal before the Tribunal.
I have heard rival contentions and gone through facts and circumstances of the case. I noted that the assessee in his paper- book consisting of 43 pages filed cash book, trial balance, copy of capital account and also withdrawals made from ICICI Bank from 01.04.2016 to 08.11.2016 amounting to Rs.23.30 lakhs apart from cash withdrawn from 09.11.2016 to 31.12.2016 of Rs.3.20 lakhs. The assessee also filed summary of account statement received from ICICI Bank which is supportive to details of cash withdrawals. I have verified some of the entries and noted that there are cash withdrawals by assessee. The assessee might have :- 5 -: utilized some of the cash for household expenses or anywhere but it is not possible that the entire cash of Rs.23.30 lakhs was spent by assessee unless and otherwise it is proved by the Revenue. Hence, I’m of the view that the cash deposits amounting to Rs.11,00,000/- made during demonetization period is out of previous withdrawals and it is explained. Hence, I delete the addition and reverse the order of the AO and CIT(A) on this issue and allow the appeal of the assessee.
In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open court at the time of hearing on 21st February, 2024 at Chennai. (महावीर "सह ) (MAHAVIR SINGH) उपा"य" /VICE PRESIDENT चे"ई/Chennai, "दनांक/Dated, the 21st February, 2024 RSR