Pushpa Vs ITO (ITAT Bangalore)
Bangalore ITAT Deletes ₹58.80 Lakh Addition; Cash Withdrawn from Same Bank Can Be Redeployed Unless Revenue Proves Otherwise
The Bangalore ITAT in Mrs. Pushpa v. ITO deleted an addition of ₹58,79,960 made under section 69A, holding that cash withdrawn from a bank account would ordinarily remain available for redeposit unless the Revenue establishes that the money was utilised elsewhere. The reassessment had been initiated on the basis of cash deposits made in a co-operative bank account by a non-filer of return.
The assessee explained that substantial cash had been withdrawn from the same bank account for her daughter’s proposed marriage and purchase of gold. Since the marriage was postponed, the cash was redeposited into the bank account on various dates. The assessee furnished details of withdrawals aggregating several lakhs made during the year and contended that the deposits merely represented redeployment of the same funds.
The Tribunal examined the bank account and observed that the cash deposits substantially correlated with earlier cash withdrawals from the same account. It held that the entire addition was unsustainable because cash withdrawn from a bank account remains available for redeposit unless there is evidence showing that it was spent or diverted for some other purpose. The Revenue had brought no such material on record.
The ITAT further noted that even the alleged peak unexplained amount of about ₹3.85 lakh could reasonably be explained considering the income position of the assessee’s husband, who was regularly assessed to tax and had annual income ranging between ₹5 lakh and ₹10 lakh. Accordingly, the Tribunal held that there was no basis to sustain the addition and directed the Assessing Officer to delete the entire addition of ₹58,79,960 under section 69A.
Key Ratio: Cash withdrawn from a bank account is presumed to be available for redeposit in the same account unless the Department demonstrates, with evidence, that the withdrawn cash was utilised elsewhere.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. ITA No. 2680/Bangalore/2025 is filed by the Assessee against the Appellate Order passed by the National Faceless Appeal Centre, Delhi (the Ld. CIT(A)) for Assessment Year 2017–18 on 30.09.2025 wherein the Appeal filed by the Assessee against the Reassessment Order passed u/s. 147 dated 25.02.2025 by the Assessment Unit (the Ld. Assessing Officer) was dismissed.
