ITAT Deletes Full Cash Deposit Addition as Business Income Was Already Accepted

Ritu Mittal Vs ITO (ITAT Agra) The Agra Bench of the Income Tax Appellate Tribunal (ITAT), in Ritu Mittal v. ITO, partly allowed the assessee’s appeal and held that an independent addition towards cash deposits under Section 69A of the Income-tax Act could not be sustained without considering the business income already accepted by the Assessing Officer (AO). The Tribunal further observed that, even if the business explanation was not accepted, the issue should be examined by applying the peak credit theory instead of taxing the entire amount of deposits. The assessee had filed her retur...