Negative Cash Balance Alone Cannot Be Treated as Undisclosed Income: ITAT Delhi

Advertisement JCIT (OSD) Vs M B Exim Private Limited (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, dismissed the Revenue’s appeal and upheld the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which restricted the addition under Section 69A of the Income-tax Act to the peak negative cash balance instead of the aggregate of all negative cash balances reflected in seized data. For Assessment Year 2022-23, the assessee filed its return declaring total income of Rs. 34,94,390/-. Following a search and seizure operation conducted on 24 November 2022, the Assessi...