Cash deposit disputes during demonetisation were remitted for fresh scrutiny after inadequate supporting evidence and Rule 29 material.

Cash deposits during the demonetisation period were challenged because the assessee's claim that the deposits came from customers was not supported by documentary evidence, and no satisfactory details of the corresponding supplies were furnished. Additional evidence was also produced before the Tribunal under Rule 29 of the Income-tax Rules, 1962. In these circumstances, the Tribunal considered it appropriate to remit the matter for fresh adjudication, with an opportunity of hearing to the assessee, and directed de novo consideration by the Assessing Officer in accordance with law.

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Issues: Whether the addition made on account of cash deposits during the demonetisation period should be sustained or the matter should be remitted for fresh examination.

Analysis: The assessee's claim that the cash deposits were made by customers was not supported by documentary evidence, and no satisfactory details of the corresponding supplies were furnished. Additional evidence was also placed before the Tribunal under Rule 29 of the Income-tax Rules, 1962. In the circumstances, the Tribunal found it appropriate to send the matter back for fresh adjudication with an opportunity of hearing to the assessee.

Conclusion: The matter was remitted to the Assessing Officer for de novo consideration in accordance with law.

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