The Appellate Tribunal addressed the issue of addition u/s 69A with reference to cash deposits during demonetization. The assessee failed to establish the source of these deposits into a bank account, contrary to RBI and Government directives. However, the Tribunal found that the assessee, engaged in the dhall mill business, had consistent cash sales with no abnormal increase during demonetization. The assessee provided evidence of cash on hand before demonetization and claimed to have received demonetized currency from customers post the specified date. The Tribunal held that the assessee's explanation for the cash deposits was genuine and acceptable, considering the nature of the business and submitted evidence. The AO and CIT(A) were criticized for not duly considering the relevant submissions, leading to the allowance of the assessee's appeal.
The Appellate Tribunal addressed the issue of addition u/s 69A with reference to cash deposits during demonetization. The assessee failed to establish the source of these deposits into a bank account, contrary to RBI and Government directives. However, the Tribunal found that the assessee, engaged in the dhall mill business, had consistent cash sales with no abnormal increase during demonetization. The assessee provided evidence of cash on hand before demonetization and claimed to have received demonetized currency from customers post the specified date. The Tribunal held that the assessee's explanation for the cash deposits was genuine and acceptable, considering the nature of the business and submitted evidence. The AO and CIT(A) were criticized for not duly considering the relevant submissions, leading to the allowance of the assessee's appeal.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4800
Join Channel
TaxTMI 
