Demonetised Cash from Members Not Unexplained: ITAT Upholds Deletion under Section 68

ITO Vs UK Souharda Credit Cooperative Society Limited (ITAT Bangalore) The Revenue’s appeal involved deletion of addition of ₹2.14 crore made by the AO under Section 68 on account of deposits of demonetised currency (SBN) received by a co-operative society from its members during the demonetisation period. The AO treated such deposits as unexplained on the ground that SBN had ceased to be legal tender. The CIT(A) deleted the addition after noting that the assessee had explained the source as receipts from members in the normal course of its credit business and that the AO failed to conduct...