Cash Deposit Addition Deleted: ITAT Accepts Cash Withdrawals as Source, Invalidating S. 69A Charge

Ramesh Verma Vs ITO (ITAT Delhi)

Delhi ITAT deleted an addition of 71.12 lakh, holding that the assessee sufficiently explained the cash deposits by correlating them with prior cash withdrawals recorded in the books. The ruling emphasizes that S. 69A (unexplained money) cannot be invoked when the source of deposits is traced to funds from bank accounts already part of the regular books.

Assessee, an individual, was selected for limited scrutiny for cash deposits & withdrawals. AO noticed cash deposits of ₹71,12,000/- in SBI & Prathma Bank &

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