ITAT deletes Section 68 Addition for cash withdrawals by a fruit commission agent

Bhai Bhai Co. Vs ITO (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT), Kolkata bench, has directed the deletion of a ₹62 lakh tax addition imposed on Bhai Bhai Co. The addition, made under Section 68 of the Income-tax Act, 1961, was for cash withdrawals from the company’s own bank account during the demonetization period. The ITAT ruled that the Assessing Officer (AO) had wrongly applied Section 68, concluding that the cash withdrawals were part of the company’s normal business operations. The case originated when Bhai Bhai Co., a commission agent in the fruit business, ca...