Suhas Ramesh Rao Rangadhol Vs ITO (ITAT Bangalore)
Assessee challenged addition of ₹33.20 lakh u/s 68 r.w.s 115BBE towards demonetisation cash deposits & GP addition of ₹94,903. AO treated SBN deposits as unexplained despite assessee showing cash balances across three proprietary concerns & offering sales in books.
ITAT held that assessee had sufficient cash on hand as on 09-11-2016 reflected in regular books & not disproved by AO. Mere deposit of existing cash during demonetisation cannot be treated as unexplained unless books are rejected or cash balance shown as fictitious. Further, once deposits are already recorded as sales & GP offered, separate addition u/s 68 is unjustified.
Regarding GP addition, Tribunal observed that books were audited & no defect was pointed out; AO cannot estimate higher margin merely based on presumed KSBC.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
ITA No. 1912/Bang/2025 is filed by Sri Suhas Ramesh Rao Rangadhol (the Assessee/Appellant) for Assessment Year 2017-18 against the Appellate Order passed by the National Faceless Appeal Centre, Delhi (the Ld. CIT(A)) dated 17.06.2025 wherein the Appeal filed by the Assessee against the Assessment Order passed u/s. 143(3) of the Income Tax Act, 1961 by the Income Tax Officer, Ward-4, Shivamogga (the Assessing Officer), is dismissed.
