Cash Deposits from Business Sales Can’t Be Taxed Again as Unexplained Money: ITAT Kolkata

Sati Saw Mill Vs ITO (ITAT Kolkata) Assessee, Shree Sati Saw Mill of Siliguri, engaged in timber/sawmill business, had its case reopened u/s 147 based on Insight portal information of large cash deposits without return filing. AO noted deposits of ₹25.29 lakh in SBI and ₹1.08 crore in Karnataka Bank, totaling ₹1.33 crore. Despite assessee’s submissions (cash book, cash flow, audited accounts, video conference explanations), AO was unconvinced and treated the deposits as unexplained money u/s 69A, making addition of ₹1.33 crore. CIT(A) upheld the addition. Assessee’s Case Business ...