Whether section 69A is applicable where assessee is not required to maintain books of accounts?

Описание: Link of full case : https://taxlawsonline.com/agtlol.html...

(2025) 474 ITR 78
In the High Court of Madras
(Before Senthilkumar Ramamoorthy, J.)

Mrs. R. Chitra
Versus
National Faceless Assessment Centre

W.P. No. 15020 of 2024 and W.M.P. Nos. 16319 and 16320 of 2024.

Decided on June 18, 2024

Playlist: 69A, 56(2)

Sec 69A: Unexplained money, etc.
Sec 56: Income from other sources

A.Y.: 2019-20/Assessee/Department

Question: Whether section 69A is applicable where assessee is not required to maintain books of accounts?

1) In respect of unexplained money u/s 69A, if the assessee concerned is required to maintain books of account and does not record the relevant income or other article in such books of account, the assessee is called upon to provide an explanation.

2) If he fails to provide an explanation or if his explanation is not satisfactory, the money or deemed article shall be deemed to be the income of the assessee.

3) In the case of an assessee who is not required to maintain books of account, but the Income-tax Department receives information that such person is the owner of unexplained money or other article, such assessee would be called upon to provide an explanation and the same consequences would follow if the assessee does not reply or if the reply of the assessee is not satisfactory.

4) This is evident from the use of the expression “books of account, if any”, in section 69A of the Income-tax Act, 1961.

5) The assessee objected that SCN and assessment order mention different sections for addition.

6) That the provisions of section 56(2)(vii)(b) mentioned in the show-cause notice and section 56(2)(x)(b)(B) mentioned in the assessment order were substantially similar.

7) Section 56(2)(vii)(b) applied to transactions that took place on or before April 1, 2017, whereas section 56(2)(x)(b)(B) applied to transactions subsequent thereto.

8) Stamp duty was paid on the reckoned value and the differential amount of Rs. 26.16 lakhs exceeded both Rs. 50,000 and 10 per cent. thresholds specified in section 56(2)(x)(b)(B)(i) and (ii).

9) Therefore, the assessee had sufficient opportunity to show cause in respect of the proposed addition and the mentioning of a different provision in the show-cause notice did not vitiate the assessment order.

10) The assessee did not file her return of Income for A.Y. 2019-20 since her income was below taxable amount.

11) An immovable property was purchased in her name for a consideration of Rs. 1.56 crore which was paid by her husband and which was less than circle rate by an amount of Rs.26.16 lakh.

12) The Assessing Officer made additions under section 69A of Rs. 1.56 crores and of Rs. 26,16,000 under section 56(2)(vii)(b).

13) Assessee had submitted only bank statement to support that consideration was paid by her husband directly but did not submitted the ROI or the ledger A/c of her husband.

14) Assessee filed writ on two grounds first she is not required to maintain books of accounts and hence section 69A is not applicable & second SCN and order u/s 147 mentioned different sections i.e 56(2)(vii)(b) & 56(2)(x)(b)(B).

15) Writ was allowed partially with a cost of Rs. 10,000/- & confirmed the addition of Rs. 26.16 lakh & remitted the matter relating to addition of Rs.1.56 crore.

16) Court held that statements submitted by assessee only show source of amount but do not establish that husband has paid tax on Rs.1.56 crores.

#RChitra
#Madras #HighCourt
#18June #2024
#Section69A
#Section56_2
#National #Faceless #assessment #Centre
#UnexplainedMoney
#IncomeTaxNotices
#IncomeTaxCases
#incometaxcasesanalysis
#IncomeTaxLaw
#advocateamitkumargupta
#9811291390(Call only after taking time on whatsApp)
#[email protected]
#[email protected]

Link for some important videos:

1) WHETHER TRIBUNAL CAN REMAND MATTER IN ENTIRETY WHERE DEPARTMENT DID NOT FILE CROSS APPEALS?- https://www.youtube.com/watch?v=gkqMk...

2) WHETHER ASSESSEE HAS ALSO TO CHALLENGE THE FINDINGS OF THE A.O THAT NOTICE HAS BEEN SERVED?- https://www.youtube.com/watch?v=XbZWh...

3) WHETHER EXTENDED TIME LIMIT U/S 149(1)(b) CAN BE USED ON THE BASIS OF SALES CONSIDERATION U/S 48?- https://www.youtube.com/watch?v=WuRt9...

4) WHETHER NOTICE SENT TO SECONDARY EMAIL IS VALID IF NOT SENT TO PRIMARY E-MAIL U/S 148?- https://www.youtube.com/watch?v=aAzHE...

5) WHETHER ENTRIES IN BOOKS OF ACCOUNTS CONCLUSIVE TO DETERMINE TAXABLE INCOME OF ASSESSEE?- https://www.youtube.com/watch?v=Rx8JQ...