Unexplained Cash Deposits during demonetization period was remanded back for proper verification

Shah Maganlal Gulabchand Choksi Vs ACIT (ITAT Surat) Conclusion: Peak credit theory could not be applied when cash deposits were converted into cheque/RTGS withdrawals, especially when there was an indication of converting undisclosed income. The importance of following the SOP and guidelines issued by CBDT for handling demonetization cases, ensuring consistency and fairness in assessments. AO must conduct thorough verification and consider all evidence, including explanations provided by the assessee, before making additions for unexplained cash deposits u/s 69A and 68. Held: Assessee was eng...