Greentek Reman Private Limited Vs ITO (ITAT Delhi)
ITAT Delhi: Cash deposits during demonetization remanded for fresh verification – Addition u/s 68 not sustainable without proper inquiry
Delhi ITAT set aside the addition of ₹28.14 lakh made u/s 68 towards alleged unexplained cash deposits during the demonetization period & remanded the matter to AO for fresh adjudication after proper verification of evidence.
Assessee, engaged in e-waste recycling & resale of refurbished IT equipment, had deposited ₹41.11 lakh in cash during November–December 2016. AO treated ₹28.14 lakh as unexplained income u/s 68, holding that Assessee’s cash sales during the demonetization window were abnormally high & not substantiated. CIT(A) upheld the addition without discussing the detailed evidence furnished by Assessee, including VAT returns, invoices & sales ledgers.
ITAT found that both AO & CIT(A) failed to examine Assessee’s detailed documentary evidence explaining the cash deposits as business receipts. The appellate order was termed non-speaking & devoid of proper reasoning.
Accordingly, ITAT remanded the matter to AO for de novo consideration, directing verification of all sales documents, VAT data & cash flow statements & to provide adequate opportunity of hearing to Assessee.
Result: Appeal allowed for statistical purposes; issue remanded to AO for fresh verification of cash deposits during demonetization.
