Demonetisation Cash Deposit Explained: Why Loan Withdrawals Prevailed Over AO’s Suspicion

Rajinder Kumar Garg Vs ITO (ITAT Chandigarh) Loan Withdrawals Proved – ITAT Deletes Demonetisation Addition; Retention of Cash ≠ Unexplained Income: Tribunal Follows P&H HC Assessee, proprietor of M/s Raj Kamal Decorators, filed return declaring income of ₹2,34,230. During demonetisation period, cash deposits of ₹35,00,000 were made in his bank account. AO accepted ₹2,00,000 as explained & treated the balance ₹33,00,000 as unexplained money u/s 69A. CIT(A) examined the cash book, accepted business receipts of ₹8,85,000 & rental income of ₹1,10,000 but sustained ₹3...