Kunal Arora Vs AO (ITAT Amritsar)
Violation of RBI notification ≠ unexplained income: ITAT Amritsar deletes s.69A on demonetisation cash sales
Amritsar Tribunal allowed Assessee’s appeal & deleted addition of ₹3.66 lakh u/s 69A made on account of deposit of ₹1,000 SBN notes after 25-11-2016 by a petrol pump dealer. Tribunal noted that Assessee maintained regular books of account, cash book was examined in scrutiny, sales, stock movement & GP were accepted, & the impugned deposits were undisputedly part of recorded cash sales already included in gross turnover of ₹8.21 crore. AO himself accepted the sales while taxing the same cash again as unexplained merely because old currency was accepted in violation of RBI/Govt notification. Tribunal held that such violation may attract consequences under RBI Act or SBN (Cessation of Liabilities) Act, but does not ipso facto render the receipt unexplained for Income-tax purposes, especially when source is proved & taxing it again would lead to double addition. Accordingly, s.69A was held inapplicable & addition was deleted in full. Appeal was allowed
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
This appeal is filed by the assessee against the order of the ld. Addl./JCIT(A)-7, Kolkata dated 19.06.2024 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO Ward 5(3), Amritsar passed u/s 143(3) of the Act, dated 16.12.2019.
