Case Law Details
S. Tulasidoss Nedunselian Vs ACIT (ITAT Chennai)
ITAT Chennai held that addition towards unexplained money u/s 69A of the Income Tax Act unjustified as assessee has filed necessary evidence to explain nature and source for cash deposits.
Facts- The assessee is a managing director of one company M/s. STN Properties Ltd. The assessee has filed his original return of income for all assessment years u/s. 139 of the Income-tax Act, 1961. A search and seizure operation u/s. 132 of the Act, was conducted on 16.11.2016 in the residential premises of the assessee. Consequent to search, notice u/s. 153A of the Act, dated 03.05.2018 was issued to the assessee. In response to notice u/s. 153A of the Act, the assessee has filed his return of income.
The case was selected for scrutiny and during the course of assessment proceedings, the AO noticed that the assessee has made cash deposits into bank account. Therefore, the AO called upon the assessee to explain the nature and source for said cash deposits. The assessee explained nature and source for cash deposits. The AO, after considering relevant submissions of the assessee, opined that the assessee could not explain source for cash deposits and thus, made addition towards cash deposits as unexplained money u/s. 69A of the Act.
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