2025 (8) TMI 1582 - AT - Income Tax

Addition under s.69A r.w.s.115BBE deleted for demonetisation cash deposits; assessed as regular retail business receipts

ITAT, Delhi (AT) allowed the appeal and deleted the addition under s.69A r.w.s.115BBE relating to cash deposits made during demonetisation. The tribunal ... Cash deposit made during demonetization as unexplained u/s 69A r.w.s. 115BBE - HELD THAT:- No reason to sustain the Addition. This is for the precise reason that assessee’s stand from day one is that he is a retailer and sold simcards and recharge coupons and the impugned cash stood deposited from the regular business activities only in the relevant financial year. Revenue could hardly dispute the clinching fact herein that the learned assessing authority herein has made addition of Rs. 5.01 lakhs only thereby accepting assessee’s remaining cash transactions as representing business income only. That being the case, it is concluded that the assessee has satisfactorily explained source of his cash deposit, and therefore, the addition herein forming subject matter of adjudication is hereby deleted in very terms. Assessee’s appeal is allowed. Appeal under section 144 of the Income-tax Act, 1961 against order dated 18.03.2024 (assessment framed 14.12.2019) concerning cash deposit of Rs. 5.01 lakhs made during demonetization. Lower authorities treated the deposit as 'unexplained u/s 69A read with section 115BBE' and upheld the addition. Assessee consistently maintained the cash arose from regular business activities as a retailer of telecommunication services (sale of SIM cards and recharge coupons). Tribunal found the Revenue had already accepted the assessee's other cash transactions as business income and therefore could not sustain the isolated addition. Holding: the assessee 'has satisfactorily explained source of his cash deposit,' and 'the addition herein forming subject matter of adjudication is hereby deleted in very terms.' Result: appeal allowed.