ITAT Reduces Addition for Household Savings Yet Confirms Higher Section 115BBE Tax

SriLakshmi Devireddy Vs ITO (ITAT Visakhapatnam) ITAT Allows ₹2.5 Lakh Relief for Household Savings but Confirms 60% Tax on Unexplained Cash Deposits – Key Takeaways Introduction The Income Tax Appellate Tribunal (ITAT) recently delivered an important ruling addressing two frequently litigated issues arising from demonetization-related assessments: 1. Applicability of the enhanced tax rate under Section 115BBE 2. Treatment of small cash deposits as household savings The case involved unexplained cash deposits totaling ₹11,00,000 in the assessee’s bank account during the relevant financ...