Demonetization Addition Reduced for Cash Deposits Supported by Recorded Sales

Satish Chandra Vs ITO (ITAT Delhi) The ITAT Delhi granted substantial relief to an assessee whose demonetization-period cash deposits of ₹80.92 lakh had been treated as unexplained money under Section 69A and taxed at the enhanced rate under Section 115BBE. The Tribunal observed that the assessee had produced material showing that the cash deposits originated from sales recorded in the books, although he failed to satisfactorily explain the sharp rise in cash sales immediately before demonetization. Balancing both sides, the Tribunal held that complete rejection of the assessee’s explanati...