2017 (8) TMI 927 - HC - Income Tax

Unexplained money u/s 69A - Held that - Tribunal while taking into consideration reference to the documents available, has taken note of the cash withdrawal to the extent of ₹ 1,35,000/- on 02nd April 2008 and 29th March 2008. In that view, the relief to such extent insofar as cash deposits out of ₹ 19,57,370/- was accepted and for the balance it was held that no source was explained by the appellant. The benefit relating to the interest as received and in that regard the benefit of ₹ 5,90,000/- was granted by accepting the second ground which had been raised before it. Therefore, in that background, a perusal of the appeal papers would indicate that insofar as the explanation that was sought to be put forth with regard to the cash deposits and the benefit claimed towards the interest, the Tribunal has considered the available records and on rendering a factual finding, has partially granted the benefit. In the absence of any other document placed before us, a different conclusion on facts, in any event, cannot be reached by us. Neither the fact finding as recorded by the Tribunal calls for interference in this appeal nor does the appeal raise any question of law for consideration.

Summary

Issues:
Appeal against Income Tax Appellate Tribunal's order for Assessment year 2009-2010 regarding cash deposits and withdrawals in bank passbook, unexplained money under Section 69A of Income Tax Act, 1961, and interest received.

Analysis:
The appellant contested the order of the Income Tax Appellate Tribunal dated 28th November 2014, concerning the Assessment year 2009-2010. The appellant claimed that the entries of deposits and withdrawals in the bank passbook should have been considered only in reference to the peak amount as 'unexplained money' under Section 69A of the Income Tax Act, 1961. The appellant argued that this raised a question of law for consideration. The Tribunal partially allowed the appeal, rejecting certain contentions, which led to the appeal before the High Court.

Upon reviewing the impugned order, the High Court examined the nature of consideration made by the Tribunal. The appellant had raised concerns about the first appellate authority treating the entire cash deposit of ?19,57,370/- as unexplained investment and confirming an additional ?5,90,000/-. The Tribunal, after reviewing the available documents, noted cash withdrawals of ?1,35,000/- on specific dates. Consequently, the Tribunal accepted relief for cash deposits out of ?19,57,370/- to the extent of the cash withdrawals mentioned but found the remaining amount unexplained by the appellant. Additionally, the Tribunal granted the benefit of ?5,90,000/- related to interest received, based on the second ground raised.

The High Court observed that the Tribunal had thoroughly considered the available records regarding the explanation provided for cash deposits and the interest claimed. The Tribunal's factual findings resulted in a partial grant of benefits to the appellant. Considering no new documents were presented to alter the facts, the High Court concluded that there was no basis for a different factual conclusion. Therefore, the High Court found no grounds for interference with the Tribunal's fact-finding or any legal questions raised in the appeal. Consequently, the appeal was dismissed as lacking merit.