Smt. Ravikumar Jeeva Kalaivani Vs ITO (ITAT Chennai)
The appeal before the Tribunal concerned additions made under Section 69A of the Income Tax Act, 1961 for Assessment Year 2019–20, relating to unexplained money credited in the bank account of a housewife assessee. The Assessing Officer (AO) reopened the assessment based on information regarding time deposits of ₹1.59 crore and interest income. While the AO accepted the explanation for time deposits, certain bank credits amounting to ₹18,99,904 were treated as unexplained. On appeal, the Commissioner (Appeals) partly deleted ₹7,44,904 but sustained an addition of ₹11,55,000 relating to amounts received from two individuals.
Before the Tribunal, the assessee challenged the sustained addition, arguing inconsistency in the findings of the Commissioner (Appeals). It was pointed out that while the Commissioner accepted the genuineness of funds received from the assessee’s brother, similar funds transferred by his wife were rejected without justification. Evidence showed that the wife had sufficient bank balance, largely sourced from transfers from her husband’s NRE account, and had transferred ₹5 lakh to the assessee. The Tribunal observed that her bank statements reflected adequate funds, including significant credits and transfers, establishing her creditworthiness.
Regarding the amount of ₹6,55,000 received from another individual, it was noted that he was employed abroad, earning salary income and maintaining a bank account with substantial deposits. Bank records showed multiple transfers to the assessee, and his financial position indicated sufficient capacity to make such payments. The assessee had furnished supporting documents, including salary details and bank statements, to establish identity, creditworthiness, and genuineness of the transactions.
