ITAT Delhi Reduces Cash Deposit Addition to 5% Due to Lack of Evidence by AO

Sh. Gopal Aggarwal Vs ITO (ITAT Delhi) In this case, the assessee, a grain trader, faced addition under Section 69A for substantial cash deposits of ₹9.25 crore across multiple bank accounts, which the Assessing Officer treated as unexplained due to lack of supporting evidence. The assessee contended that the deposits were sourced from business cash sales and redeposit of earlier withdrawals. The CIT(A) accepted part of the explanation, treating ₹2.72 crore as explained and holding that the remaining deposits could not be fully reconciled due to lack of one-to-one correlation. To balance r...