Demonetization Cash Deposit Addition Partly Deleted: Tribunal Rejects Unproven Gift Claims

Sahil Sareen Vs ITO (ITAT Delhi) The ITAT Delhi adjudicated on the sustainability of additions made under Section 68 of the Income-tax Act, 1961, regarding cash deposits made during the 2016 demonetization period. The Tribunal provided partial relief to the assessee by accepting historical cash sales and prior bank withdrawals as legitimate sources of the deposited funds. Background and Facts The assessee, an individual wholesale trader of medicines, filed a return for Assessment Year 2017-18. Following the demonetization announcement on November 8, 2016, the assessee deposited a total of ₹3...