Sakleshpur Niranjan Sowmya vs. Income Tax Officer, Ward-1 & TPS, Hassan

Parties Involved

Facts Summary

Sakleshpur Niranjan Sowmya, a resident of Hassan, Karnataka, works as a cook for old-age homes, dependent families, and small catering functions. She also sells homemade products such as chutneys and pickles. For the assessment year 2020-21, she filed a return for the first time, declaring income of ₹ 15,98,350. The Assessing Officer found that she had made cash deposits of ₹17 lakh in her bank account, time deposits of ₹90 lakh, and earned interest of ₹ 3,07,095. Since no return had been filed, reassessment proceedings were initiated. The assessee submitted details of the time deposits and cash deposits, along with the computation of income and an affidavit regarding receipts from the sale of old jewellery. However, she did not provide the required evidence to substantiate her claims. The Assessing Officer treated cash deposits of ₹ 39,28,000 as unexplained and made an addition of ₹ 4, 678 towards bank interest. The assessee appealed to the learned CIT(A), who dismissed the appeal. The assessee now appeals to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. The order passed by the Learned Assessing Officer u/s 147 and confirmed by the First Appellate Authority is bad in law.
• 2. The Notice issued by the Income Tax Officer, Ward-1, Hassan u/s 148 on 24.03.2024 is not valid and without jurisdiction.
• 3. The Learned Assessing Officer and FAA have erred in making addition of Rs. 39,28,000/- u/s. 69A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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