₹68.21L Cash Deposit addition: ITAT Directs Fresh Assessment for Local Authority Exemption

Nagar Panchayat Vs ACIT (ITAT Jabalpur) Income Tax Appellate Tribunal (ITAT), Jabalpur Bench, has remanded the case of Nagar Panchayat, Banda, back to the Assessing Officer (AO) for a fresh assessment. This decision comes after the Nagar Panchayat challenged an addition of ₹68.21 lakhs to its income under Section 69A of the Income-tax Act, 1961, which was made due to cash deposits in its bank account. The local authority asserted that these deposits stemmed from its statutory municipal functions, such as tax collection and lease rentals, and thus were exempt from income tax under Section 10(...