ITAT upholds Deletion of Addition u/s 69A of Income Tax Act by CIT(A) on Ground of Genuine Disclosure of Transactions in ROI [Read Order]

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) upheld the deletion of addition made under section 69A of the Income Tax Act,1961 by the Commissioner of Income Tax (Appeals) on the ground of genuine disclosure of the transactions filed in the Return of Income (ROI). 

KavithaSiddareddy, the respondent-assessee was an individual who filed her return of income and the assessing officer made an addition to the income of the assessee. The Commissioner of Income Tax (Appeals) deleted the addition made by the assessing officer on the ground of disclosure of genuine transactions. 

D.Anand, the counsel for the assessee contended that the assessee had satisfactorily discharged the onus cast upon by filing various details to prove the identity of the creditors, the genuineness of the transactions, and their creditworthiness, and in that process, she had also proved the source for the purchase of the property. 

It was further submitted that the assessing officer made additions towards investment in property as an unexplained investment under section 69 of the Income Tax Act, 1961 was not as per the law. 

AR.V.Sreenivasan, the counsel for the revenue contended that the Commissioner of Income Tax (Appeals) accepted the contention of the assessee without appreciating the fact that the evidence filed by the assessee clearly shows that there are cash withdrawals from the bank account of the firm and whereas, the property had registered in the relevant assessment year. 

The bench observed that the assessee had established the source for the purchase of property with the necessary evidence and thus, the assessing officer made additions towards the source for the purchase of property as an unexplained investment under section 69 of the Income Tax Act was not as per the law and not sustainable. 

The two-member bench comprises Mahavir Singh ( Vice President) and Manjunatha. G ( Accountant) upheld the deletion of addition by the Commissioner of Income Tax (Appeals) while dismissing the appeal filed by the revenue. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates