When Profit Is Estimated, Cash Deposit During Demonetization Is Not Taxable Separately

Puligilla Purnachander Vs ITO (ITAT Hyderabad) Introduction: In a recent decision by the Income Tax Appellate Tribunal (ITAT) Hyderabad, the case of Puligilla Purnachander vs ITO for the assessment year 2017-18 was addressed. The ITAT held that when profit is estimated, the cash deposit during demonetization cannot be brought to tax separately. Background: The Assessing Officer (AO) had issued notices to the assessee based on a deposit of Rs. 18,88,000 during the demonetization period. The AO estimated the income at 8% of the gross sales and additionally treated the cash deposit, including dem...