High Court dismissed the Revenue appeal against ITAT confirming CIT(A) order. Citations of AO remand report accepting deposit consistency deleted unaccounted purchases additions.
Tax case appeal stands dismissed.
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T.C.A.No.40 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12.06.2026
CORAM
THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND
THE HONOURABLE MR. JUSTICE G.ARUL MURUGAN
T.C.A.No.40 of 2026
Principal Commissioner of Income Tax Madurai
Appellant(s)
Vs
Shri Ganesan Anbuselvam No.11-FA, Standard Colony Thiruthangal, Tamil Nadu 626 130 PAN : ADQPA9937R
Respondent(s)
PRAYER: Appeal filed under Section 260A of the Income Tax Act, 1961,
against the order of the Income Tax Appellate Tribunal “B” Bench, Chennai dated 26.09.2025 in ITA.No.3181/Chny/2024.
For Appellant(s) : Mr.V.Mahalingam Senior Standing Counsel
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T.C.A.No.40 of 2026
JUDGMENT
(Delivered by G.ARUL MURUGAN, J.)
The Revenue has preferred this tax case appeal under Section 260A of the Income Tax Act, 1961, assailing the order of the ITAT “B” Bench, Chennai, dated 26.09.2025, in ITA.No.3181/Chny/2024.
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T.C.A.No.40 of 2026
Tax (CIT) (Appeals). Pursuant to the additional evidences admitted under Rule 46A of the Income Tax Rules, 1962, the CIT (Appeals) called for a remand report from the Assessing Officer. Based on the Assessing Officer’s report, CIT (Appeals) deleted the additions. The revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT). The ITAT, after finding that the CIT (Appeals) had deleted the additions only based on the remand report of the Assessing Officer where the Assessing Officer has accepted the Assessee's explanations and evidences, dismissed the appeal.
that the ITAT could not have confirmed the order of CIT (Appeals), merely by relying on the remand report of the Assessing Officer. The report of the Assessing Officer was based on an affidavit by two non tax paying entities and, therefore, the findings arrived at are perverse.
materials available on record.
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T.C.A.No.40 of 2026
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T.C.A.No.40 of 2026
report submitted by the Assessing Officer accepting the assessee’s explanation and evidences and it was found that the deposits were consistent with the business activity, the CIT (Appeals) rightly deleted the additions, which was taken note of and confirmed by the ITAT.
(SUSHRUT ARVIND DHARMADHIKARI, CJ.) (G.ARUL MURUGAN, J.) 12.06.2026 Index : Yes/No Neutral Citation : Yes/No gya
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T.C.A.No.40 of 2026
THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN, J.
gya
T.C.A.No.40 of 2026
12.06.2026
Page 6 of 6
1 issue framed by the court
Whether dismissal of tax case appeal was correct when CIT(A) deleted additions based on AO remand report accepting assessee explanations.
4 provisions across 2 enactments
Principal Commissioner of Income Tax Madurai
Shri Ganesan Anbuselvam
SUSHRUT A. DHARMADHIKARI
G. ARUL MURUGAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
