The assessee filed the return of income for the assessment year 2014-15 on 02.10.2014 declaring total income of ₹.89,89,770/-. The case was selected for scrutiny through CASS and notice under section 143(2) of the Income Tax Act, 1961 was issued. After considering the details furnished by the assessee, the Assessing Officer has completed the assessment under section 143(3) of the Act dated 29.12.2016 assessing total income of the assessee at ₹.5,04,29,690/- after making various additions.


Counsel for the assessee, submitted that both the minors have received gifts in the previous assessment year and the amounts were lying in the bank accounts of the minors unused. Thus, the minors offered loans to the assessee out of their savings. 


The division bench of V. Durga Rao, Judicial Member and Manjunatha, G. Accountant Member said that it is unable to understand as to why the Assessing Officer has not issued any summon under section 131 of the Act to Shri S. Srinivasalu to appear before him and to record the statements

It further stated that it appears that the CIT(A) has also not bothered to make enquiry before confirming the addition. Once the assessee has furnished detailed confirmation of payment of ₹.8,83,600/- on accounts of factory maintenance expenses, to prove the identity of Shri S. Srinivasalu, copy of Aadhar, PAN, ITR, etc. were brought on record, it is of the considered opinion that the assessee has discharged the primary onus cast upon her and thus, the above addition made by the Assessing Officer is liable to be deleted. 

Case title: Smt. Devakumari v/s The Assistant Commissioner of Income Tax

Citation: I.T.A. No.3066/Chny/2019  

Amit Sharma

Author of Tax Concept

Leave a comment

Your email address will not be published. Required fields are marked *