Vanitha G. V. The Income Tax Officer, Ward \\u2013 12(2)

ITA/636/2013

AI Insights

The case involves an appeal by Vanitha G., challenging the order of the Income Tax Appellate Tribunal, which had upheld the additions made by the assessing officer regarding unexplained cash deposits. The assessing officer had treated Rs.21,00,000 as unexplained cash, despite the assessee's claim that it was from earlier withdrawals. The High Court found that the Tribunal and the assessing officer had not adequately considered the entries in the books of accounts and the passbook, leading to a remand for a fresh assessment.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 794122 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 26-08-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: A SHANKAR; M LAVA
• Keywords: Assessment Year 2007-2008; Cash Withdrawals; Income tax appeal; Unexplained Cash; Re-deposits
• Section: 260-A

Judgement Text

" - 1 - IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 26TH DAY OF AUGUST, 2014 PRESENT THE HON’BLE MR.JUSTICE N.KUMAR AND THE HON’BLE MRS.JUSTICE RATHNAKALA INCOME TAX APPEAL NO.636 OF 2013 BETWEEN: VANITHA G. NO.684, 9TH MAIN, INDIRA NAGAR 1ST STAGE, BANGALORE- 560 038. …APPELLANT (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: THE INCOME TAX OFFICER, WARD – 12(2), 4TH FLOOR, # 14/3, R.P.BHAVAN, OPP. TO RBI BANK, NRUPATHUNGA ROAD, BANGALORE – 560 001. ..RESPONDENT (BY SRI. K.V.ARAVIND, ADV.) THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED 31/07/2013 PASSED IN ITA NO.385/BANG/2012, FOR THE ASSESSMENT YEAR 2007- 2008. PRAYING THIS HON'BLE COURT TO: - 2 - I. TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW AS STATED ABOVE AND ANWER THE SAME IN FAVOUR OF THE APPELLANT. II. TO ALLOW THE APPEAL AND SET ASIDE THE FINDINGS TO THE TEXTENT AGAINST THE APPELLATE IN THE ORDER PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE ‘C’ BENCH, BANGALORE IN ITA NO.385/BANG/2012 DATED:31/07/2013 RELATING TO THE ASSESSMENT YEAR 2007-2008. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, N.KUMAR J., DELIVERED THE FOLLOWING: J U D G M E N T This appeal is preferred by the assessee, challenging the order passed by the Tribunal, holding that the assessee has not given any explanation as regards the purpose for which the cash was kept with her for a period of one year and that the additions made by the assessing officer has been done on reasonable grounds. 2. The material on record discloses that the assessee has withdrawn cash of Rs.25,00,000/- at various dates from 21.04.2005 to 10.05.2005 and the re-deposits are claimed to have been made from 08.05.2006 to 20.12.2006 of an amount of Rs.23,00,000/-. The said amount withdrawn and the - 3 - redeposit made are reflected in the books of accounts maintained by the assessee. But still the authorities disbelieved the cash withdrawals in 2005 from the bank account to be the source for the deposits of Rs.23,00,000/- in the year 2006. They accepted the deposits to the extent of Rs.2,00,000/-, which was the money withdrawn in the months of September 2006, November 2006 and deposited in December 2006 but Rs.21,00,000/- was treated as unexplained cash and credited to the income of the assessee. 3. From the aforesaid facts, it is clear that the assessee has withdrawn the amount from the bank and after such withdrawal the amount has been taken to the accounts book. Thereafter, the amount is re-deposited after making entry in the books of accounts and therefore, the assessee is claiming that the amount re- deposited was the money which was withdrawn earlier. Merely because during the period of one year, there were withdrawals and re-deposit of the amounts to the bank account, the authorities without any proper appreciation of the books of accounts as well as the - 4 - pass book have come to a conclusion that it is an undisclosed income and added to the income of the assessee. The fact to be noted in the instant case is that the authorities have not taken into account the pass book entries and the books of accounts maintained by the assessee. 4. In that view of the matter, no inference can be drawn without any proper appreciation of the records. Therefore, the order of the tribunal is set aside and the matter is remanded back to the assessing officer for fresh consideration of all the entries in the books of accounts and the pass book maintained by the assessee. All the contentions are kept open to be adjudicated before the assessing authorities. Sd/- JUDGE Sd/- JUDGE nvj "