Case Law Details
Chandrakumari Vs ITO (ITAT Chennai)
Introduction: This article discusses the recent ITAT Chennai order in the case of Chandrakumari Vs. ITO. The appeal involves cash deposits made during the demonetization period, and the ITAT partially allows the appeal due to the assessee’s failure to produce documentary evidence for some deposits.
Analysis: The appellant filed an appeal against the order of the ld. Commissioner of Income Tax (Appeals), challenging the addition made under section 69A of the Income Tax Act towards unexplained cash deposits made during the demonetization period. The Assessing Officer treated the cash deposit of ₹25,60,000/- as unexplained since the assessee could not provide documentary evidence for the source of the deposits. The ld. CIT(A) confirmed the addition.
The appellant argued that the deposited amount included earnings from agricultural income, interest income, and regular business income from TV serial story writing. The appellant claimed that the income earned was retained in cash for agricultural operations and purchasing agricultural inputs, among other purposes. The appellant provided evidence for agricultural income and TV serial story writing earnings.
The ITAT considered the submissions and the previous acceptance of similar income sources in earlier assessment years. Based on this, they partially allowed the appeal and directed the Assessing Officer to restrict the disallowance to ₹15,00,000/-.
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