Shanmugasundaram Venkatachalapathy Vs ITO (ITAT Chennai)
Doctor’s Claim of Family Gifts Savings Rejected –No Proof of Gifts/Drawings – Tribunal Confirms Cash Investment Addition u/s 69; ITAT Chennai Upholds Addition of ₹69.5 Lakh as Unexplained LIC Investment of Govt Doctor
Assessee, a Government doctor also running a private clinic, filed return declaring income of ₹21.8 lakh. AO reopened assessment u/s 147 after noting professional receipts of ₹2.21 lakh from pharma companies (as per Form 26AS) not declared in return. Further, AO found investments of ₹85.96 lakh in LIC policies in the name of Assessee’s son. Not satisfied with explanations, AO treated ₹69.56 lakh as unexplained investment u/s 69, besides adding the undisclosed professional income. CIT(A) confirmed the additions.
Before Tribunal, Assessee sought condonation of 209 days’ delay in filing appeal, explaining that he is a medical practitioner from semi-urban Tirunelveli, with limited tax knowledge, & relied on wrong advice that matter would end at first appeal. Tribunal found the explanation bona fide & condoned delay.
On merits, Assessee contended that LIC investments were sourced from drawings, spouse’s income, retirement benefits of mother & sister,& gifts from relatives. However, neither AO nor CIT(A) found such claims supported by reliable evidence. Tribunal noted that CIT(A) had discussed the explanations in detail & rightly rejected them. Since Assessee failed to establish sources with credible proof, the additions were confirmed.
