The Chennai Bench of Income Tax Appellate Tribunal has held that the legal heirs unaware of details and failed to produce additional evidence before lower authority and remand the matter back to Assessing Officer.
The assessee, Late Sri Nemichand Gunavanthraj, made cash deposit of Rs.1,29,49,075/- in the bank account. The AO asked the assessee to explain the source of deposit. But without satisfying the reply without evidence AO added the cash deposit u/s. 69A of the Act as unexplained money. Aggrieved, assessee preferred appeal before CIT(A).
The CIT(A) accepted the explanation to the extent of Rs.51,50,877/- as part of business transaction of the assessee. For the balance amount of Rs.77,98,198/-, the assesse could not furnish any explanation except that the amount was received from relatives and members of HUF, the CIT(A) confirmed the addition.
Aggrieved, assessee has moved petition under Rule 29 of the ITAT Rules and filed additional evidences such as, confirmation letters from relatives, copies of Income-tax returns, copies of financial statements, copies of wealth tax returns of the relatives to prove the creditworthiness of the gifts received from relatives and members of HUF.
Mr. AR.V. Sreenivasan, counsel appeared on behalf of the respondent opposed admissibility of additional evidence and contented that these evidences were available to the assessee even during the course of original assessment proceedings or at the time of first appellate proceedings.
Mr. Rushabh N Shah, CA appeared on behalf of the appellant submitted that assessee who was managing the affairs died before the completion of assessment and the evidences were collected by the legal heirs after lot of persuasion as the assessee’s legal heirs were not aware about the details. Further submitted that the appellant is ready to pay a cost of Rs.50,000/- to be paid to Tamil Nadu State Legal Services Authority at High Court of Madras.
The Coram of Sri Mahavir Singh, Vice President and Sri Manoj Kumar Aggarwal, Accountant Member has held that “the assessee died before the assessment proceedings and the evidences could not be collected, we admit these evidences and remand the matter back to the file of the AO for fresh adjudication”.\
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