Cash Deposit Addition Scaled Down to 5% – ITAT Delhi Upholds CIT(A)’s Estimate

Anil Kumar Singhal Vs ITO (ITAT Delhi) Assessee’s case was reopened u/s 147 based on information that he deposited ₹4.65 crore cash in bank accounts without explaining the source. During reassessment, AO found total deposits of ₹8.21 crore (cash & cheque) and, unsatisfied with Assessee’s explanation of pottery trading, treated the entire sum as unexplained money u/s 69A. Before CIT(A), Assessee argued that deposits represented turnover from his pottery trading business in Khurja. Observing that both deposits & withdrawals existed &that estimation was unavoidable in such tra...