Smt P.Padmavathi vs The Income Tax Officer on 6 October, 2010
9. I have considered the rival submissions. The fact that there were
earlier withdrawal of cash from the very same bank account is not disputed
either by the AO or the CIT(A). The details of the past withdrawals are
given as an annexure to this order. The AO/CIT(A) have however
IT(TP)A No.394/Bang/2022
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proceeded on the basis that the availability of the earlier withdrawal in the
hands of the assessee has not been proved by the assessee. The Hon'ble
Karnataka High Court in the case of Smt. P. Padmavathy (supra) clearly
laid down that earlier withdrawals of cash from Bank account have to be
accepted as available to an assessee to explain a later deposit as source.
The Hon'ble Court held that it was not open to the Revenue to contend that
the assessee has to explain as to how the cash withdrawn earlier was
utilized by an assessee and was still available with the assessee. The
decisions cited by the learned DR are contrary to the law laid down by the
Hon'ble Karnataka High Court and therefore not binding.