ITAT Orders Reassessment of Post-Demonetization Cash Deposits

B.K. Rajanna Vs ITO (ITAT Bangalore) In B.K. Rajanna vs. ITO, the Bangalore ITAT addressed a dispute over cash deposits made during the demonetization period. The taxpayer, a bar and restaurant owner, deposited ₹44.83 lakh in cash, including ₹24.44 lakh in Specified Bank Notes (SBNs). The Assessing Officer (AO) held that the taxpayer was not authorized to accept SBNs after November 8, 2016, and added ₹9.50 lakh as unexplained cash under Section 68 of the Income-tax Act, subjecting it to a higher tax rate under Section 115BBE. The CIT(A) upheld this assessment, rejecting the taxpayer’s ...