ITAT Bangalore : Demonetisation Cash Deposits Cannot be Added u/s 68 When Supported by Books – GP Addition Deleted Without Defects in Accounts

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. ...