Demonetisation Cash Deposits Explained; Partners Capital Not Taxable in Firms Hands

New Surroad Ginning And Pressing Factory Vs ITO (ITAT Ahmedabad) The Ahmedabad “C” Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal and dismissed the Revenue’s cross-appeal for AY 2017-18. On cash deposits during the demonetisation period, the Tribunal held that the assessee–a cotton ginning and pressing partnership firm–had satisfactorily explained the source as business cash sales (cotton oil and cotton cake) in the normal course of trade. Given the sizeable turnover and the business practice of cash purchases/sales, the explanation was found credible. The...