Section 69 Can’t Apply When Cash Deposits Are in Books: ITAT Delhi Deletes ₹1.25 Cr Addition

Ranbir Singh Sorout Vs ITO (ITAT Delhi) Tribunal holds cash deposits of ₹1.25 crore matching turnover in books cannot be treated as unexplained income u/s 69. Revenue’s appeal dismissed. Tribunal finds books of accounts properly reconcile ₹1.25 crore cash deposits, rejecting Revenue’s claim of unexplained income. Tribunal rules deposits recorded in books of accounts cannot be treated as unaccounted income. The case arose when AO received information regarding cash deposits of ₹1.25 crore in the savings bank account of the assessee, a wholesale cloth trader. Since Assessee had not fil...