ITAT Limits Addition to 0.05% of Gross Total for Cash Deposits in Bogus Business Activities

Rajendra Gokuldas Parekh Vs ITO (ITAT Mumbai) Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently delivered a crucial decision in the case of Rajendra Gokuldas Parekh vs Income Tax Officer (ITO). The appeals, pertaining to the assessment years 2011-12 and 2012-13, address common issues related to cash deposits in various proprietorship concerns engaged in alleged bogus business activities. Detailed Analysis: The ITAT considered the appellant’s arguments challenging the addition of Rs. 765,553 (1% of total credit amount) made by the assessing officer. The appellant, den...