Cash Deposits During Demonetisation Cannot Be Taxed Twice Where Sales Are Accepted: ITAT Delhi

Manik Asri Vs ITO (ITAT Delhi) The Delhi Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal and deleted the addition of ₹55 lakh made under Section 68 of the Income Tax Act in respect of cash deposited during the demonetisation period, holding that the cash deposits could not be treated as unexplained where they were sourced from recorded cash sales already reflected in the books of account. The assessee, a proprietor engaged in the business of PU coated fabric, had filed a return declaring total income of ₹6,90,980. During scrutiny, the Assessing Officer (AO) noted t...