Deputy Commissioner of Income Tax, Central Circle-2(4), Chennai vs. Gnanaguru Lavanya and Muthulakshmi Vellaisamy

Parties Involved

Facts Summary

The assessee, Gnanaguru Lavanya, sold 13.85½ acres of land to Shri V.P. Jayapradeep for Rs.1,11,44,800/-. During a search and seizure action, certain loose sheets and note pads were seized from the premises of M/s. Sarnith Enterprises India Private Limited and Shri Ganesan Saravanakumar. Based on these documents and statements recorded from Shri G.Saravanakumar, the Assessing Officer (AO) concluded that the assessee received unaccounted cash consideration of Rs.27,26,55,200/- over and above the registered sale consideration. The AO made an addition of Rs.13,75,64,540/- in the hands of the assessee. Aggrieved by this addition, the assessee appealed before the Learned Commissioner of Income Tax (Appeals) (Ld.CIT(A)), who deleted the addition. The Revenue then appealed before the Tribunal.…

Legal Issues

• 1. Whether the addition of Rs.13,75,64,540/- made by the AO towards on-money receipts is sustainable.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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