आयकर अपीलीय अिधकरण, ’सी’ (cid:1)यायपीठ, चे(cid:9)ई।

IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI (cid:1)ी एबी टी. वक(cid:10), (cid:11)ाियक सद(cid:17) एव ं

(cid:1)ी एस. आर. रघुनाथा, लेखा सद(cid:9) के सम(cid:27)

BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1899/Chny/2025 िनधा(cid:14)रण वष(cid:14)/Assessment Year: 2021-22 &

Cross-Objection No.65/Chny/2025 िनधा(cid:13)रण वष(cid:13)/Assessment Year: 2021-22 The DCIT, v. Jayapriya Company, Central Circle-2(2), No.37, Second Floor, Chennai. Siva Vishnu Complex, Natesan Street, T. Nagar, Chennai-600 017.

[PAN: AAHFJ 0958 M (अपीलाथ(cid:22)/Appellant) ((cid:23)(cid:24)यथ(cid:22)/Respondent/Cross-

Objector)

Department by : Mr. Bipin C.N., CIT &

Ms. R. Anita, Addl.CIT Assessee by : Mr.N. Naga Prasad, Advocate (Virtual)

सुनवाईक(cid:28)तारीख/Date of Hearing : 04.09.2025 घोषणाक(cid:28)तारीख /Date of Pronouncement : 30.10.2025 आदशे / O R D E R PER ABY T. VARKEY, JM:

This appeal has been preferred by the Revenue and Cross Objection filed by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals), (hereinafter referred to as ‘Ld.CIT(A)‘), Chennai-

Jayapriya Company

19, dated 07-04-2025 for the Assessment Year (hereinafter referred to as ‘AY‘) 2021-22.

2. At the outset, it is noted that, the Revenue’s appeal in ITA No.1899/Chny/2025, is delayed by ‘2’ days, for which, the DCIT has filed the affidavit for condonation of delay. To this, the Ld. Counsel of the assessee has not raised any serious objection. Consequently, we consider it prudent to condone the delay of ‘2’ days in filing of the appeal and the appeal filed by the Revenue is taken up for hearing on merits.

3. Briefly stated, the facts relating to the present appeal are that, a search action u/s 132 of the Act was conducted on Jayapriya group on 16- 12-2021. In the course of search, it was inter alia unearthed that, the assessee was using a remote (cloud) server. It was revealed that, the server contained a folder titled ‘DATA’ which inter alia included data pertaining to Jayapriya Company under the head ‘Investments’. According to the AO, the data also contained entries indicating receipt of ‘FD’ (fixed deposits) of Rs. 43,20,84,277/- from 153 persons. It was brought to our notice that, the Investigating authorities had randomly examined some of these persons, all of whom had denied placing any deposit or FDs with the assessee. Thereafter, the case of the assessee for the relevant year was taken up for scrutiny. The AO while completing the assessment, is Jayapriya Company observed to have recorded his satisfaction at Para 11 [Page 66] of the assessment order that, the assessee had accepted fixed deposits in cash to the tune of Rs. 43,20,84,227/- during the FY 2020-21 in violation of provisions of section 269SS and which consequently attracted provisions of penalty u/s 271D of the Act. The AO in his satisfaction expressed stated that, the assessee has received cash FD’s to the tune of Rs.43.20 Cr. in violation of Section 269SS of the Act, and hence he is referring this issue to Additional Commissioner for initiation of penalty u/s.271D of the Act. The relevant Para 11 of the assessment order dated 30-12-2022 reads as under:-

11. Acceptance of Fixed Deposits in cash:

During the course of search and seizure proceedings at No:30, Jayapriya Chit Funds Building, Main Road, Neyveli, Cuddalore Dist, Tamilnadu - 607802, a remote server (Cloud server - 103.214.132.40) was identified, data was copied and the same was seized vide annexure ANN/PVD/JPCF/ED/S. Further, on perusal of the same, it is found that the assessee group has received cash FDs during the FY 2020-21 was Rs. 43,20,84,227 which is in violation of Section 269SS of the IT Act. Hence, this issue is being referred to Additional Commissioner of Income Tax, Central Range - 2 for initiation of Penalty u/s

271D separately.[ emphasis given by us]

4. It is seen that, the above assessment order was passed aft