Cash Deposits of Mobile Recharge Distributor Not Unexplained: ITAT Upholds Deletion of ₹1.95 Crore Addition

ITO Vs Raj Kumar (ITAT Chandigarh) The Chandigarh Bench of the ITAT dismissed the Revenue’s appeal and upheld the order of the CIT(A) deleting an addition of ₹1.95 crore made under section 69A for alleged unexplained cash deposits for AY 2017-18. The assessee, an authorised distributor of mobile recharge coupons for Bharti Airtel Ltd., had deposited large amounts of cash in his bank account, which were subsequently transferred to Airtel for purchase of recharge coupons. The Assessing Officer, without conducting any enquiry and in an ex parte assessment, treated the entire cash deposits as ...