Cash Deposits from Tractor Sales Can’t Be Taxed as Unexplained Income: ITAT Ahmedabad

ITO Vs Manibhadra Tractors (ITAT Ahmedabad) In ITO vs Manibhadra Tractors, the Income Tax Appellate Tribunal, Ahmedabad Bench, examined whether cash deposits in the assessee’s bank account could be treated as unexplained income under Section 69A of the Income Tax Act. The case arose from reassessment proceedings for A.Y. 2017–18 initiated under Section 147 after information was received that the assessee had carried out transactions amounting to Rs. 5.41 crore. As the assessee did not initially file a return or respond during assessment proceedings, the Assessing Officer (AO) completed the...