Assessee needs to establish genuineness of deposit during demonetization

Bhavana Co-operative Credit Society Vs ITO (ITAT Bangalore)

ITAT Bangalore held that each and every deposit during the demonetization period would not fall under the category of unaccounted cash. However the burden is on the assessee to establish the genuineness of the deposit in order to fall outside the scope of unaccounted cash.

Facts-

The assessee is a cooperative credit society engaged in providing credit facilities to its members. The assessee has deposited Rs. 43,10,760/- during the post-demonetization between 09/11/2016 and 30/12/2016. AO made an addition of said amount as income of the assessee u/s. 68 of the income tax act, on the ground, that the assessee ought not to have accepted Specified Bank Notes which was no longer a legal tender.

Conclusion-

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