Konathala Nooku Naidu Vs ITO (ITAT Visakhapatnam)
In the case of Konathala Nooku Naidu vs. Income Tax Officer (ITAT Visakhapatnam), the appeal was filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [Ld. CIT(A)-NFAC] regarding the assessment year 2017-18 under the Income Tax Act, 1961.
The facts of the case are as follows: The assessee, an individual, filed their income tax return for the AY 2017-18 on 23/01/2018, declaring a total income of Rs. 5,28,089/- under ‘Short Term Capital Gains’ [STCG] and ‘other sources’. The case underwent Limited Scrutiny under CASS to examine cash deposits made during the demonetization period and the claim of exemption of agricultural income. Following this, notices under sections 143(2) and 142(1) of the Act were issued and duly served on the assessee.
During the assessment proceedings, the assessee was asked to explain cash deposits of Rs. 25,40,000/- made in their ICICI Bank account. The assessee claimed these were proceeds from the sale of real estate in Anakapalli area and submitted supporting documents including an agreement of sale and confirmation letters. However, the Assessing Officer (AO) concluded that the assessee lacked appropriate sources for the cash deposits and treated them as unexplained cash under section 69A of the Act. Consequently, the assessed income was determined at Rs. 30,68,089/-.
