Demonetization Cash Deposits: Not Unexplained Money with Established Cash Sales History

ACIT Vs Himachal Fibres Limited (ITAT Delhi) In a recent case between ACIT (Assistant Commissioner of Income Tax) and Himachal Fibres Limited, the issue at hand was whether cash deposits made in bank accounts during the demonetization period could be treated as unexplained income. The crux of the matter revolved around the fact that the taxpayer had a history of cash sales and whether the Assessing Officer (AO) had valid grounds to question these deposits. Detailed Analysis The taxpayer, Himachal Fibres Limited, filed its income tax return for the assessment year 2017-18, reporting a loss of R...