Entire cash deposits during demonetization cannot be considered as unexplained, 20% Addition Upheld

Yogesh Kumar Chandrakant Jariwala Vs ITO (ITAT Surat)

Entire cash deposits from business income during demonetization could not be considered as unexplained however 20% of additions was upheld

Conclusion: Entire cash deposits made during demonetization could not be treated as unexplained credit and a reasonable addition of 20% of total cash deposit would be sufficient to avoid the possibility of revenue leakage. Despite this, Tribunal upheld that 20% of the additions was valid as the assessee could not substantiate the source.

Held: A

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