The Chennai Bench of Income Tax Appellate Tribunal (ITAT) confirmed the deletion of Rs. 2.41 crore by asserting the Stamp Paper purchases as the source of income of the assessee and dismissed the appeal of the Revenue.
Kavitha Subbrarayalu (assessee) engaged in the business of stamp vending for customers. The Assessing officer (AO) noted that the assessee made cash deposits of Rs. 2,41,95,000 in her bank account. The AO added the entire cash deposit under section 69A as unexplained money for the Assessment year (AY)2015-2016
Aggrieved by the order of the AO, an appeal was filed before the Commissioner of Income Tax(appeals)[CIT(A)]. The assessee contended that the cash was received for the purchase of Stamp paper from the customers and later the cash was deposited in her bank account.
The assessee also argued before the CIT(A) that the cash deposited in her account remitted to the treasury department by NEFT. The assessee also submitted that the income earned by her only from the commission by sale of stamp paper.
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Accepting the above contention, the CIT(A) deleted the amount of Rs. 2.41 crore and allowed the appeal of the assessee. Aggrieved by the order, the Revenue filed an appeal before the tribunal. The assessee filed a cross- objection. The tribunal heard both the parties.
The two-member bench comprising Aby T. Varkey (Judicial Member) and Jagadish (Accountant Member) observed that the assessee is a stamp vendor and earns only commission income. The tribunal further observed that the assessee collected cash from the customers for the sale of Stamp paper and the cash collected was deposited in her bank account.
The tribunal observed that the cash amounting to Rs. 2.41 crore deposited in her bank account was later paid to the Government Treasury by NEFT for procuring Non-Judicial Stamp papers which was evident from the certification of the Bank manager.
Therefore, the tribunal confirmed the deletion of Rs. 2.41 crore by the CIT(A). The Appeal of the revenue was dismissed. The cross-objection filed by the assessee was partly allowed.
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