Demonetization Cash Deposit: ITAT Deletes Addition as Source Established

Palak Rajesh Kumar Dudhiya Vs ITO (ITAT Ahmedabad) In a notable verdict, the Income Tax Appellate Tribunal (ITAT) Ahmedabad Bench has overturned an addition of Rs. 15 lakh made by the tax authorities against Palak Rajesh Kumar Dudhiya. The case pertained to cash deposits made during the demonetization period in Assessment Year 2017-18. The ITAT ruled in favor of the assessee, finding that a clear trail of cash flow had been established, adequately explaining the source of the deposits. The individual assessee, who reported interest income, had her case selected for “limited scrutiny̶...