Cash Deposits Linked to Business Turnover, Only 8% Income to be Taxed: ITAT Pune

ITO Vs Rakesh Hukumchand Agarwal (ITAT Pune) Section 68 can’t apply when business link proven – Tribunal sustains profit estimation The case concerned a grain merchant. Based on information that he deposited ₹2.61 crore in cash with a Cooperative Society without filing return, proceedings were reopened u/s 147. In response to notice u/s 148, he filed return declaring income of just ₹1,98,820/-. AO rejected the explanation, treating the entire cash deposits of ₹2,61,10,199/- as unexplained cash credits u/s 68 & assessed total income at ₹2.63 crore. On appeal, CIT(A) accepted tha...