Ita/636/2013 Of Vanitha G v. The Income Tax Officer

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 26 DAY OF AUGUST, 2014. PRESENT THR HON’BLE MR.JUSTICE N. KUMAR AND THR HON’BLE MRS..JUSTICK RATHNAKALA INCOME TAX APPEAL NO.636 OF 2013 BETWEEN:VANITHA G.|NO.084, 9 MAIN,INDIRA NAGAR 1 SIAGE,BANGALORE- 560 O38. _ APPBRLLANT (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: THE INCOME TAX OFFICER,WARD -—- 12(2), FLOOR,# 14/3, R.P. BHAVAN,OPP. TO RBI BANK,NRUPATHUNGA ROAD,BANGALORE —- 560 OO]. RESPONDENT (BY SRI. K.V.ARAVIND, ADV.) THIS INCOMB TAX APPBKBAL IS FILED UNDESECTION 260-A OF INCOME TAX ACT, 1961, ARISING OUT|OF|ORDERDATHD.31/07/2013PASSEDINITA|NO.385/BANG/2012, FOR THE ASSESSMENT YEAR 2007-2008. PRAYING THIS HON'BLE COURT TO: 1. TO FORMULATE THE SUBSTANTIAL QUESTION OFLAW AS STATED ABOVE AND ANWER THE SAME IN|FAVOUR OF THE APPELLANT.LAW AS STATED ABOVE AND ANWER THE SAME IN|FAVOUR OF THE APPELLANT. Il.TO ALLOW THR APPEAL AND SKIT ASIDK THEFINDINGSTOTHERTREXTENTAGAINSTTHERAPPBKLLATKR $I&IN THR ORDER PASSBKD BINCOME TAX APPELLATE TRIBUNAL, BANGALORE‘Cc’ BENCH, BANGALORE IN ITA NO.385/BANG/2012DATED:31/07/2013 RBLATING|TOTHERASSESSMENT YEAR 2007-2008.FINDINGSTOTHERTREXTENTAGAINSTTHERAPPBKLLATKR $I&IN THR ORDER PASSBKD BINCOME TAX APPELLATE TRIBUNAL, BANGALORE‘Cc’ BENCH, BANGALORE IN ITA NO.385/BANG/2012DATED:31/07/2013 RBLATING|TOTHERASSESSMENT YEAR 2007-2008. THIS APPBKAL COMING ON FOR ADMISSION THISDAY,N.KUMAR J., DELIVERED THE FOLLOWING: JU DGMENT Thisappeal1SpreferredbytheASSESSCE,challenging the order passed by the Tribunal, holdingthat the assessee has not given any explanation asregards the purpose for which the cash was kept withher for a period of one year and that the additions madeby the assessing officer has been done on reasonableerounds. 2. The material on record discloses that theassessee has withdrawn cash of Rs.25,00,000/- atvarious dates from 21.04.2005 to 10.05.2005 and the're-deposits are claimed to have been made fromO8.05.2006TO 20.12.2006|ot an?amountot Rs.23,00,000/-. The said amount withdrawn and the redeposit made are reflected in the books of accountsmaintained by the assessee. But still the authoritiesdisbelieved the cash withdrawals in JO0O5 from the bankaccoun:yTO bethe SOUTCEforthedepositsoT Rs.23,00,000/- in the year 2006. They accepted thedeposits to the extent of Rs.2,00,000/-, which was themoney withdrawn in the months of September 2006,November 2006 and deposited in December 2006 butRs.21,00,000/- was treated as unexplained cash andcredited to the income of the assessee. 3. From the aforesaid facts, it is clear that theassessee has withdrawn the amount from the bank and|after such withdrawal the amount has been taken to theaccounts book. Thereafter, the amount is re-depositedalter making entry in the books of accounts andtherefore, the assessee is claiming that the amount re-deposited was the money which was withdrawn earlier. —Merely because during the period of one year, therewere withdrawals and re-deposit of the amounts to thebank account, the authorities without any properappreciation of the books of accounts as well as the pass book have come to a conclusion that it is anundisclosed income and added to the income of the'assessee. The fact to be noted in the instant case 1sthat the authorities have not taken into account the!pass book entries and the books of accounts maintainedby the assessee. | 4. In that view of the matter, no inference can bedrawn 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 forfresh consideration of all the entries in the books ot accounts and the pass book maintained by theASSESSEE. All the contentions aTlrkeptOpen)TObeadjudicated before the assessing authorities. @DI Sd/-JUDGE| Sd/-JUDGE|