Redeployment of Withdrawn Cash Cannot Trigger Section 68 Addition: Source Proven

Advertisement Samar Exports Vs ITO (ITAT Chennai) In this case, the assessee was subjected to addition of ₹57 lakh (net ₹55.26 lakh) under section 68 for cash deposits made during the demonetisation period, which was upheld by the CIT(A). The assessee explained that the deposits were not unexplained money, but were out of earlier cash withdrawals of ₹63.50 lakh from the same disclosed bank account made between April and July 2016. The bank statement clearly established a direct trail of withdrawals and subsequent deposits. The Tribunal observed that the withdrawals were not disputed b...