ITAT deletes addition for cash deposited during demonetization based on past trend of Cash Sales & Deposit

Lateef Abdul Mohd. Vs ITO (ITAT Hyderabad) Introduction: The case of Lateef Abdul Mohd. vs ITO involves an appeal against the addition of Rs.30.00 lakhs for cash deposits made during demonetization and Rs.2,40,000 for low withdrawals. The Assessing Officer argued that the cash deposits were unexplained, while the appellant contended they were from sales prior to the currency ban. Detailed Analysis: The appellant presented month-wise cash sales data for the financial years 2015-16 and 2016-17, demonstrating a consistent correlation between cash sales and bank deposits. Comparisons with the prec...