Cash Deposit Explained – ITAT Bangalore Deletes ₹11 Lakh Addition u/s 69A

Swamyraju Chandrashekar Vs ITO (ITAT Bangalore) Summary: The appellate authority held that the addition of ₹11,00,000 under Section 69A of the Income-tax Act for AY 2016-17 was unjustified. The assessee had deposited ₹11,00,000 in cash on 25 January 2016, claiming it was part of the sale proceeds of a property sold on 17 April 2015, with the cash component totaling ₹13,30,000. The AO rejected this explanation, citing the ten-month delay and presuming the funds were likely used for house construction. The CIT(A) upheld this addition. On appeal, the authority noted that suspicion or assump...