ITAT Chennai Judgments — March 2023

The assessee failed to provide complete details for many creditors, and summons issued to others were returned unserved. Therefore, the genuineness of the sundry creditors could not be established.

The Tribunal confirmed the additions for unexplained cash credits and short-term loans, finding the assessee failed to prove their source and genuineness. However, the addition for written-off sundry creditors was deleted as it represented a rejection/return of software, not income.

The Tribunal found that the assessee had prima facie made a 30% disallowance in the computation of income, and the provided evidence supported this claim. Any further disallowance by the CPC would amount to double disallowance.

The Tribunal held that the assessee had demonstrated the start of construction activities and made substantial payments during the year. The utilization of sale proceeds towards construction was not disputed, and the acquisition of the property in the wife's name did not jeopardize the claim.