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Facts
The assessee appealed against the CIT(A)'s order for AY 2017-18, contending that lower authorities failed to appreciate that sufficient cash withdrawals existed to cover subsequent cash deposits. The authorities rejected this explanation, stating that cash cannot be kept for a long time for future expenses.
Held
The Tribunal found the reasoning of the lower authorities implausible and remitted the matter back to the Assessing Officer for fresh examination. The AO is directed to consider the availability of cash withdrawal by the assessee and provide a meaningful opportunity before passing any view.
Key Issues
Whether the lower authorities were justified in rejecting the assessee's explanation for cash deposits based on the premise that cash cannot be kept for long periods, and if the matter requires re-examination considering the assessee's cash withdrawal history.
Sections Cited
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Prakash Chand Yadav
Asst.Year 2017-2018 Sri.Subair Kunnath The Income Tax Officer Kunnath Aaderi Arikulam Ward 2(1) v. Koyilandi Kozhikode. Kozhikode – 673 326 PAN : DCYPS7474D. (Appellant) (Respondent) Appellant by :--- None --- Respondent by : Smt.Leena Lal, Sr.AR Date of Pronouncement :19.02.2025 Date of Hearing : 20.01.2025. O R D E R Per Prakash Chand Yadav, JM :
The present appeal of the assessee is arising from the order of the learned Commissioner of Income-tax (Appeals) dated 18th September, 2023 and relates to the assessment year 2017-2018 having DIN & Order No.ITBA/NFAC/S/250/2023- 24/1056224744(1).
At the outset, the assessee submits that both the authorities have erred in not appreciating that there was sufficient withdrawal of cash with the assessee, which subsequent deposits thereof. When the case was called upon, none appeared on behalf of the assessee. Therefore, we proceed to dispose of this appeal after hearing the learned Senior DR.
The learned Senior Departmental Representative relied upon the orders of the authorities below.
We have heard the learned Sr.DR and perused the material available on record. We observe that both the lower authorities, i.e. the AO and the CIT(A) have simply gone away by saying that no person can keep cash for a long time for meeting future expenses. We are of the firm view that this reasoning is not at all a plausible reason and therefore in the interest of justice we remit the matter back to the file of the AO for examining afresh after considering the availability of cash withdrawal by the assessee. Needless to say, the AO shall afford meaningful opportunity to the assessee before passing any view.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 19th day of February, 2025.