SC issued notice against SLP filed against ruling of HC justifying only 2% addition on huge sum deposited in Bank
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- Last Updated on 15 February, 2022
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Case Details: PCIT v. Shitalben Saurabh Vora - [2021] 133 taxmann.com 442 (SC)
Judiciary and Counsel Details
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- Sanjay Kishan Kaul and Hrishikesh Roy, JJ.
- Vikramjit Banerjee, Ld. ASG, Ms. Gargi Khanna, Shetty Uday Kr. Sagar, Vikas Bansal, Udai Khanna, Advs. and B.V. Balaram Das, AOR for the Petitioner.
Facts of the Case
The Supreme Court of India has issued notice against a special leave petition (SLP) filed by the revenue against the order of the High Court wherein the Tribunal ruling was upheld in respect to additions made on account of deposits made in the bank account.
A huge amount of money was found to be deposited in the assessee’s bank account. AO made an addition under section 68 on account of such an amount of money. Tribunal noted that along with deposits made by the assessee, there were simultaneous withdrawals from its bank account, leaving behind a negligible balance. Such deposits and withdrawals from Bank represented the trading activities of the assessee. Thus, the assessee had discharged her burden by furnishing details of transactions reflected in bank statements connected with its business.
Further, revenue had not brought anything on record suggesting that the assessee had so much income as computed by AO. As such, deposits in Bank could not be treated as income on a standalone basis without considering withdrawals; Tribunal estimated income at the rate of 2 per cent of the amount deposited with the Bank. Later, the High Court upheld the order passed by the Tribunal.
Case Review
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- Notice issued in SLP against Pr. CIT v. Shitalben Saurabh Vora [2021] 133 taxmann.com 441 (Guj.) (para 1) [See Annex].
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