Revenue Appeal Dismissed for Low Tax Effect as Higher Tax Rate Held Non-Retrospective

ITO Vs Mahendrakumar Bhagvandas (ITAT Rajkot) The appeal before the Income Tax Appellate Tribunal, Rajkot concerned Assessment Year 2017–18 and arose from an order of the Commissioner of Income Tax (Appeals), NFAC, which had deleted an addition made under Section 68 of the Income-tax Act, 1961. The Assessing Officer had treated ₹1.11 crore, out of cash deposits made during the demonetisation period, as unexplained cash credits and taxed it under Section 68 read with Section 115BBE, alleging that the assessee introduced unaccounted money in the guise of cash sales. The Revenue argued that t...