2024 (8) TMI 1502 - AT - Income Tax

ITAT Overturns Lower Authorities' Decisions, Rules Cash Deposit Additions During Demonetization Unjustified for A.Y. 2017-18.

The ITAT allowed the appeal, overturning the decisions of the AO and CIT(A). The ITAT found the additions to the assessee's income, related to cash ... Unexplained income u/s 69A - assessee had deposited cash in the bank account - HELD THAT:- The amount as accepted as the turnover of the assessee and rest amount deposited Specified Bank Notes as unexplained income. AO has accepted the partial deposits made by the assessee as business turnover and rest as unexplained income without giving any reasons. The AO should have been given the reasons on what material the amount deposited in SBNs was the unexplained income of the assessee when the AO has accepted the amount of Rs 600000/- as his turnover the balance cash in SBNs should have also been accepted the turnover of the assessee. The assessee has discharged the onus that the transaction of the cash deposit was genuine. Assessee appeal allowed. The appeal was filed against the order of the Commissioner of Income Tax for A.Y. 2017-18. The assessee deposited cash during demonetization. The Assessing Officer made additions to income, which the CIT(A) upheld. The ITAT allowed the appeal, setting aside the lower authorities' orders.