Assessment on Dissolved Firm Upheld for Failure to Explain ₹25 Lakh Cash Deposit

Kalptaru Cotton Co Vs ITO (ITAT Ahmedabad) Cash Deposit After Firm’s Dissolution Unexplained: ITAT Ahmedabad Confirms ₹25 Lakh Addition u/s 69A Assessee, Kalptaru Cotton Co., a partnership firm dissolved on 30.04.2015, had not filed a return for AY 2017-18. During demonetisation (Nov–Dec 2016), ₹25,00,000 was deposited in the firm’s SBI bank account. Based on AIR information, AO issued several notices u/s 142(1) from December 2017 onwards. Assessee finally replied on 27.06.2019, stating that the firm had ceased business long ago & the cash was from pre-dissolution cash balance. A...