Kirankumar Amrutlal Shah Vs ITO (ITAT Ahmedabad)
Routine Business Cash Deposits Can’t Be Taxed u/s 69A – ITAT Ahmedabad Quashes 115BBE Hit- No ITR Doesn’t Mean Unexplained Cash: Tribunal Protects Small Trader in DM Period Case
Assessee, a small Kariyana Trader, deposited Rs.10,09,000 in his two bank accounts during demonetisation. AO treated the sum as unexplained money u/s 69A & taxed it u/s 115BBE, mainly because no return was filed for AY 2017-18. Assessee explained that his sales were Rs.48,31,861 with a low margin, resulting in taxable income of only Rs.2,33,612, hence no filing obligation. He produced VAT returns, bank statements, ledger, cash-deposit details & past years’ returns, demonstrating regular cash-based business & routine deposits. The remand report itself admitted that details were furnished, yet AO & CIT(A) ignored them & confirmed the addition without proper opportunity to rebut. Tribunal held that cash deposits were clearly explained as business receipts consistently reflected in records, & authorities erred in making addition u/s 69A. The entire addition & consequential 115BBE levy were deleted & appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The appeal is filed by the assessee against the order dated 31.03.2024 passed by the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2017-18.
