Veerappan Lakshmanan Vs ACIT (ITAT Chennai)
Chennai ITAT Deletes ₹7 Lakh Addition as Cash Gift from Son Stood Substantiated by Cash Flow and Balance Sheet
The Chennai ITAT deleted the addition of ₹7 lakh made under section 69 towards alleged unexplained cash deposits after finding that the assessee had adequately explained the source of the amount as a gift/advance received from his son. The Tribunal noted that the assessee had furnished a cash flow statement, while the son had also filed a declaration explaining the source of funds, including recoveries from debtors, sale of jewellery, contributions from his wife and father-in-law, and personal savings. Importantly, the son’s balance sheets for the relevant years reflected the outstanding balances, including the ₹7 lakh transaction, and these documents were already available before the Assessing Officer and the CIT(A). Holding that the documentary evidence sufficiently established the genuineness of the transaction, the Tribunal ruled that the confirmation of the addition was unjustified, set aside the CIT(A)’s order, and directed deletion of the addition.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the assessee is directed against the order dated 26.06.2025 passed by the ld. Commissioner of Income Tax (Appeals), Addl/JCIT(A)-1, Nashik for the assessment year 2012-13.
