Smt. Jayanthi Seeman Vs ITO (ITAT Chennai)
Summary: The Chennai Bench of the Income Tax Appellate Tribunal partly allowed all four appeals filed by Smt. Jayanthi Seeman for Assessment Years 2010-11 to 2013-14 against separate orders of the CIT(A)-2, Chennai dated 30.07.2020. The appeals arose from reassessments made under section 143(3) read with section 147 of the Income-tax Act, 1961 after a search under section 132 in the case of the assessee’s husband, Mr. P. Seeman, on 23.08.2014 and information from the Investigation Wing concerning cash deposits and capital gains on sale of immovable property. The Tribunal’s order was pronounced on 28.02.2025.
For AY 2010-11, the Tribunal considered the addition of Rs.1,01,59,959/- arising from the difference in the cash-flow statement, after Rs.9,30,450/- agricultural income had already been allowed by the CIT(A). The assessee explained the cash inflow through rent advances received back, bank withdrawals, withdrawals by hostel staff and capital contribution. The Tribunal accepted cash rent-advance refunds of Rs.24,87,500/- from P. Saroja, R. Malathy, Sathurappan & Rukmani and K. Balaraman, holding that the evidence supported those cash receipts. It also accepted Rs.18,50,000/- withdrawn from the Saraswathi Bhavanam bank account and Rs.28,64,163/- withdrawn by hostel staff through bearer cheques. The addition of Rs.4,00,436/- claimed as capital contribution/gift from the husband was sustained for want of cogent evidence. Consequently, out of the original addition, Rs.72,01,663/- was allowed in the appeal and Rs.20,27,846/- remained sustained. The Tribunal also allowed the Rs.7,48,842/- interest expenditure on the Rs.52.50 lakh loan from GE Money Financial Services Ltd., finding that the loan was used for the hostel business and directing the AO to allow the interest. The rent-payment ground was dismissed as not pressed because the AO had already considered the rent after verification.
