Section 69A Addition Deleted as Cash Deposits Were Business Turnover: ITAT Chennai

Sakthi Traders Vs ITO (ITAT Chennai) The assessee, a partnership firm engaged in the business of running a hardware store, filed its return of income for Assessment Year 2017-18 declaring total income of Rs.97,940. After scrutiny proceedings under Sections 143(2) and 142(1), the Assessing Officer (AO) noted cash deposits of Rs.27,07,500 in the assessee’s bank account, including Rs.22,51,000 deposited in specified bank notes during the demonetisation period. As the assessee did not furnish documentary evidence explaining the deposits or comply with the notices, the AO completed the assessment...