Telescoping of Cash Deposits Allowed Against Cash Advances: ITAT Chennai

Dhanabalan Selvamuthu Kumar Vs ITO (ITAT Chennai) Telescoping of Cash Deposits Allowed Against Cash Advances: ITAT Chennai Partly Deletes Bank Deposit Addition The Chennai Bench of the ITAT partly allowed the assessee’s appeal for AY 2011-12 and granted relief by applying the principle of telescoping to unexplained bank deposits. The case arose from remand proceedings pursuant to an earlier ITAT order, where the Assessing Officer made an aggregate addition of ₹39.95 lakh towards unexplained cash deposits and credits in the assessee’s bank accounts. The Tribunal noted that the assessee ha...