Case Law Details
Sasi Enterprises Vs DCIT (ITAT Chennai)
The assessee received refund of Rs.3.70 Lacs from one Mrs. Nagammal. In support, the assessee produced confirmation letter given by Shri P.V.Padmanadhan (son of deceased Mrs. Nagammal). It was stated that Mrs. Nagammal entered into an agreement for sale of 25 acres of land and received advance of Rs. 11 Lacs from the assessee in March, 1989. Since the transactions could not be completed, the amount was returned back in installments. In further support, letter from one Shri P. Amalanathan, Advocate was also filed. However, in the absence of any other documentary evidences forthcoming from the assessee, Ld. AO added the same as ‘Income from other sources’. The Ld. CIT(A) confirmed the same, Aggrieved the assessee is in further appeal before us.
From the facts, it emerges that the assessee firm paid advanced to Mrs. Nagammal in earlier years pursuant to a sale agreement. However, the transaction could not be completed and accordingly, the money was received back in installment. This transaction has been confirmed by the son of deceased lender who expired in 1995. The assessee also filed confirmation letters from advocate who was aware about the transaction, Therefore, in the absence of any adverse evidence on record, the explanation was to be accepted. Accordingly, by deleting the same, we allow this ground of appeal
FULL TEXT OF THE ORDER OF ITAT CHENNAI
1. Aforesaid appeal by assessee for Assessment Year (AY) 1993-94 arises out of the order of learned Commissioner of Income Tax (Appeals)-18, Chennai [CIT(A)] dated 28.02.2020 in the matter of assessment framed by the Ld. Assessing Officer [AO] u/s. 144 of the Act on 30.11.2007. The grievance of the assessee is two-fold i.e., (i) agricultural income of Rs.2,16,850/- has been assessed as ‘income from other sources’; (ii) Refund of advance of Rs.3.70 Lacs has been added to the income of the assessee. This is second round of appeal before Tribunal since the matter in the first round, in revenue’s appeal, was set-aside to the file of Ld. AO to decide the issues afresh.
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