Sithuraj Ashok Vs ITO (ITAT Chennai)
The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals) / NFAC, Delhi dated 15.05.2024 for Assessment Year 2017-18. The assessee challenged additions of Rs. 3,77,100/- under Section 28 and Rs. 16,55,500/- under Section 69A read with Section 115BBE of the Income-tax Act, 1961.
The Revenue had information that the assessee deposited Rs. 29,82,000/- into his bank account. A notice under Section 142(1) was issued, but the assessee had not filed a return by 31.03.2018. The assessment was ultimately completed under Section 144, with additions of Rs. 3,77,100/- under Section 28 and Rs. 16,55,500/- under Section 69A. The CIT(A) dismissed the appeal.
The Tribunal first condoned the 555-day delay in filing the appeal after considering the assessee’s petition and affidavit. It then noted that the AO’s finding that no return had been filed was baseless because the assessee had produced a return filed under Section 139(4) on 04.10.2019, declaring income of Rs. 4,34,819/- before deduction of Rs. 57,719/- under Chapter VI-A. The Tribunal held that the income declared was sufficient to cover the business income estimated by the AO and directed deletion of the separate addition of Rs. 3,77,100/- under Section 28.
