Cash withdrawals alone do not justify tax reassessment: ITAT Kolkata

Sonavati Devi Vs ITO (ITAT Kolkata) In the case of Sonavati Devi vs. ITO, the Income Tax Appellate Tribunal (ITAT) Kolkata ruled that mere cash withdrawals from a bank account cannot justify reassessment under Section 147 of the Income Tax Act, 1961. The case involved the assessee, an individual, who faced reassessment proceedings after withdrawing ₹1,70,47,000 from her Syndicate Bank account. The Assessing Officer (AO) treated the withdrawals as an indication of escaped income, leading to an addition of ₹39,15,987 based on estimated extra gross profit. The Commissioner of Income Tax (Appe...