Income Tax Appellate Tribunal - Chennai
Angammal Sethuraman,Chennai vs Ito, Ward 2 Chennai, Chennai on 10 April, 2026
आयकर अपीलीय अिधकरण, 'ए' ायपीठ, चे ई।
IN THE INCOME TAX APPELLATE TRIBUNAL
'A' BENCH: CHENNAI
ी एबी टी. वक , ाियक सद एवं सु ी पदमावती यस, लेखासद के सम"
BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND
MS. PADMAVATHY.S, ACCOUNTANT MEMBER
आयकर अपील सं ./ITA No.3330/Chny/2025
िनधा$रण वष$ /Assessment Year: 2010-11
Angammal Sethuraman, The Income Tax Officer,
No.181-182, Kaumandisellipalayam, Vs. Ward-2,
Pethapalayam, Perundurai, Erode.
Erode - 638 052.
PAN: AHQPA 5630H
(अपीलाथ /Appellant) ( यथ /Respondent)
अपीलाथ की ओर से/ Appellant by : Ms. Sanchita, Advocate
()थ की ओर से /Respondent by : Mr. C.Sreekumar, JCIT
सुनवाई की तारीख/Date of Hearing : 07.04.2026
घोषणाकी तारीख /Date of Pronouncement : 10.04.2026
आदे श / O R D E R
PER PADMAVATHY.S, A.M:
This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 04.11.2025 for Assessment Year (AY) 2010-11.
2. The assessee is an individual and did not file the return of income. The A.O received information that the assessee has made huge investments through M/s. Aditya Birla Money Ltd. to the tune of Rs. 1.29 Crores during ITA No.3330/Chny/2025 Angammal Sethuraman :- 2 -:
the financial year 2009-10. Since the assessee did not file the return of income, the A.O reopened the assessment by issue of notice u/s. 148 of the Act. The assessee neither filed the return of income nor responded to the notices issued by the A.O. The A.O therefore completed the assessment u/s. 147 r.w.s 144 of the Act treating the payout amount in the Demat Account to the tune of Rs.33,40,440/- as unexplained investment u/s. 69 of the Act.
Aggrieved, the assessee filed further appeal before the CIT(A). The assessee submitted before the CIT(A) that:
"1. I am only a house wife and I do not have any taxable income all along. My husband Mr. Palaniappan opened a Demat Account in my name with Aditya Birla Money Ltd. and I have no other investments in shares. He used to obtain shares transferred from his friends circle who did not have share trading account which were sold through my DEMAT account. And for the transaction, a small consideration of about 1-2% may be paid to me as commission. I was not aware that of the consequences of trading shares. If you look into my AXIS bank transactions, the above fact can be verified by the fact that after every receipt of money on sale of shares from ADITYA BIRLA MONEY LIMITED (My Share Broker) they were transferred to the respective owners account through bank only after deducting my commission. (excel workings attached)
2. Moreover, but for these transactions, there were no other credits or debits in my bank account. This itself clearly shows that I am a very small person with no means even for my livelihood.
3. When notices were received from Income tax department only, I came to know that these transactions were treated as my own by the Best judgement assessment u/s.144 of the Income tax act for non-response to earlier notices. Actually, during the pre-assessment period, I was with my ailing mother in my native place in chettinadu for a long time. Therefore, I could not respond to the notices within stipulated time as I have not received them. It was not done intentionally.
4. I have already furnished the complete name and address, PAN nos, contact nos and DPID and their share broker's name etc of the respective transferors. They were my landlords and I was their tenant. When I revealed above IT notice issued to me to them, they said they have admitted capital gains in their hands and paid taxes. When I asked for their income tax return copies, pies, they refused to handover to me ITA No.3330/Chny/2025 Angammal Sethuraman :- 3 -:
because of their other transactions which they did not want to reveal to me.
5. Moreover, the assessment relates to to AY 2010-11, which is 15 years past and hence now I cannot produce any evidence about their DEMAT holdings etc. But one can very well come to the conclusion that they do not belong to me merely by looking into my Share transaction statement and bank account.
I am enclosing herein the ADITYA BIRLA MONEY LIMITED client wise share statement of transaction in my DPID-11716099 to prove that I was not holding any shares and all the shares were transferred from other's DPID. The shares that were transferred from the respective DPID's are reflected as transfers from Coimbatore capital in my DEMAT transaction account and on corresponding dates of transfer of shares, the amounts credited in my axis bank account were immediately transferred to the respective DPID holders. An excel extract with details are attached for reference.
I am also attaching herewith the copy of the sortings noted down by my husband (4 nos) for your kind information.
6. I have proved beyond doubt that none of the shares sold were from my own holdings. All shares were transferred from someone else account which were reflected in ADITYA BIRLA MONEY LIMITED, the statement of transactions by referring their individual DPID for each transaction. This fact can be verified by referring my bank statements where the sale proceeds were transferred to the owners respectively immediately on the subsequent dates.
7. Further if these credits and debits relating to the share transactions are removed from the bank statements, I had very few transactions, whose value would be insignificant. This reflects my genuine financial status. I am a very small person with meagre means. I should not be taxed for my ignorance. Further I have not concealed any income.
8. I believe your honor will understand my pitiable situation and the transactions in my bank account and will accept my grounds of appeal as the income relates not to me and render justice."
3. The CIT(A) however dismissed the appeal by holding that:
"****** The key issue is whether the sum of 33,40,440/- credited as payout from Aditya Birla Money Limited represents the appellant's own income or merely funds belonging to others routed through her account.
The following facts are undisputed.ITA No.3330/Chny/2025
Angammal Sethuraman :- 4 -:
1) The DEMAT and trading accountsa Birla Money Limited stood in the name of the appellant.
ii) The bank account in which the payouts were credited also belonged to the appellant.
iii) The appellant has not produced any documentary evidence such as confirmations, affidavits, or ITR copies of the alleged transferors/owners of shares.
iv) No contemporaneous record exists to establish that the shares sold actually belonged to third parties.
Although the assessee has claimed that the transactions were done for friends and relatives, the onus lies squarely upon the assessee under sections 69 and 69B to prove the identity, genuineness, and source of the amounts credited in her account. The mere assertion that others have paid taxes on these transactions is not sufficient unless corroborated by documentary proof.
The appellant admits that she cannot now produce evidence as the matter relates to 15 years past and that the alleged owners "refused to give their ITR copies. Such admission only reinforces that no verifiable proof has been adduced.
The AO had made several attempts to seek explanation before resorting to best judgment assessment. The assessee's non-compliance has led to absence of primary evidence during assessment as well as appeal proceedings. Even before me, the appellant has failed to furnish:
1) Confirmations from the alleged real owners,
ii) PAN or ITR copies of such persons,
iii) Proof of share ownership transfer (off-market transfer instructions or DEMAT transfer statements of alleged owners), or
iv) Any proof that 1% commission was actually retained as income.
Mere entries in the appellant's own DEMAT and bank accounts cannot, by themselves, prove that the transactions belong to others. It is also pertinent that the entire chain of evidence ownership of shares, consideration received, and transfer to others has not been substantiated by any verifiable or third-party evidence.
Therefore, the claim that these are third party transactions remains unsubstantiated and self-serving.
ITA No.3330/Chny/2025Angammal Sethuraman :- 5 -:
Under these circumstances, the AO was justified in treating the payouts as unexplained investments u/s 69. The law is well settled that when an assessee fails to discharge the onus of proving the source of investment or the ownership of the funds, the AO is entitled to treat the same as unexplained.
Accordingly, the addition of 33,40,440/- is confirmed"
4. We have heard the parties, and perused the material available on record. The A.O reopened the assessment for the reason that the assessee has not offered the income arising out of the Demat Account with M/s.Aditya Birla Money Ltd. The assessee submitted before the CIT(A) that the Demat Account is opened and operated by her husband and that she has not made any investments in shares with her own funds. The assessee further submitted that the transactions carried out through her Demat account actually belong to her husband's friends on whose behalf the transactions were carried out by assessee's husband. The assessee also submitted that the sale consideration received in the Demat account has subsequently been transferred to the friends' account which would prove that the transactions were carried out on behalf of somebody else and that the assessee has earned only commission income out of the entire transactions. From the perusal of the orders of the lower authorities, we notice that the submissions of the assessee have been rejected for the reason that the assessee has not produced any documentary evidences to support the claim that transactions were carried out on behalf of somebody else and that the shares traded through her Demat account actually belong to third party. During the course of hearing, the ld. AR submitted that the Demat account statement, the bank statement containing the receipt and subsequent transfer to the actual investor in support of the submissions made before the lower authorities are available. The ld. AR also submitted that the said documents would prove that the amount received from M/s. Aditya Birla ITA No.3330/Chny/2025 Angammal Sethuraman :- 6 -:
Money Ltd. which is subsequently transferred to the actual owners of the shares to submit that the transactions are indeed carried out on behalf of third parties. The Ld. AR prayed that the said documentary evidences could be produced before the lower authorities if one more opportunity is given. Without prejudice the Ld. AR fairly considered that the assessee has not offered the commission income to tax and that the assessee being a housewife is not well versed with income tax matters due to which she did not represent the case properly before lower authorities. Considering the overall facts and circumstances of the case, we are inclined to give one more opportunity to the assessee. Accordingly we remit the appeal back to the Jurisdictional Assessing Officer (J.A.O) with a direction to examine the claim of the assessee with regard to the impugned transactions by calling for necessary details to decide the issue in accordance with law. The J.A.O is further directed to sustain the addition towards commission income to the tune of Rs.2,00,000/- if the claim of the assessee with regard assessee acting only as commission agent with regard to the impugned transactions is allowed. Needless to say that the assessee be given a reasonable opportunity of being heard. It is ordered accordingly.
5. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 10th day of April, 2026 at Chennai.
Sd/- Sd/-
(एबी टी. वक ) (पदमावती यस)
(ABY. T. Varkey) (Padmavathy.S)
याियक सद य / Judicial Member लेखा सद य /Accountant Member
चे नई/Chennai, दनांक/Dated: 10th April, 2026.
EDN, Sr. P.S ITA No.3330/Chny/2025 Angammal Sethuraman :- 7 -:
आदे श क ितिल प अ े षत/Copy to:
1. अपीलाथ /Appellant
2. थ /Respondent
3. आयकर आयु /CIT, Chennai/Madurai/Coimbatore/Salem
4. िवभागीय ितिनिध/DR
5. गाड फाईल/GF EJTADA Digitally signed by EJTADA DURGA DURGA NARESH Date: 2026.04.16 NARESH 10:57:35 +05'30'