No Artificial Split of Bank Credits; Entire Deposits Treated as Business Receipts @ 4%

Mohd. Saleem Rather Vs ITO (ITAT Amritsar) The ITAT, Amritsar Bench held that once business activity is accepted, bank deposits cannot be artificially bifurcated into business credits & unexplained cash, merely because part of deposits were made during demonetisation period. In this case, the assessee, a wholesale trader of mobile phones, had total bank credits of about ₹200.85 lakh, including ₹13.96 lakh cash deposits during demonetisation. While the AO estimated income @ 8% on non-cash credits, he separately treated demonetisation cash deposits as unexplained, which was affirmed by C...