Cash Deposit During Demonetization: ITAT deletes additions partially, Considering Possible Cash Sales

Gaurangi Merchandise Pvt. Ltd. Vs ITO (ITAT Delhi)

In the case of Gaurangi Merchandise Pvt. Ltd. Vs ITO for Assessment Year 2017-18, the Income Tax Appellate Tribunal (ITAT), Delhi, addressed the issue of unexplained cash deposits made by the assessee during the demonetization period. The assessee had made cash deposits amounting to ₹30.18 lakhs between November 29, 2016, and December 14, 2016. These deposits were treated as unexplained cash credits by the assessing authorities, and the addition was made under Section 68 of the Income Tax Act, 1961, subject to tax at 60%

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