No Section 69A Addition for Cash Deposits Based on Suspicion Alone

Sanjivani Mahila Gramin Bigar Sheti Sahakari Pat Sanstha Vs ITO (ITAT Nagpur) Income Tax Appellate Tribunal (ITAT), Nagpur Bench, has set aside an order by the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre, Delhi, that had confirmed an arbitrary 10% addition to cash deposits of Sanjivani Mahila Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit, a co-operative society. The ITAT ruled that once an assessee’s explanation regarding the source of cash is found to be substantially correct and not disproved, no addition under Section 69A of the Income Tax Act, 19...