https://www.taxtmi.com/caselaws?id=462894 The ITAT Chennai upheld the CIT(A)'s deletion of additions under section 69A relating to unexplained cash deposits during demonetization. The assessee explained that the cash deposited was held as working capital, including cash repayments from Kolkata-based companies, and was deposited into bank accounts immediately after demonetization. The AO's objection that cash used for working capital could not simultaneously explain the deposits was rejected, as working capital includes cash and cash equivalents. The tribunal found the explanation bona fide and reasonable, noting the assessee's prior disclosure of cash in hand before demonetization. The appeal was allowed, confirming the legitimacy of the cash deposits and negating the addition. en-us Wed, 03 Jan 2024 00:00:00 +0530 Wed, 23 Jul 2025 20:31:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462894 The ITAT Chennai upheld the CIT(A)'s deletion of additions under section 69A relating to unexplained cash deposits during demonetization. The assessee explained that the cash deposited was held as working capital, including cash repayments from Kolkata-based companies, and was deposited into bank accounts immediately after demonetization. The AO's objection that cash used for working capital could not simultaneously explain the deposits was rejected, as working capital includes cash and cash equivalents. The tribunal found the explanation bona fide and reasonable, noting the assessee's prior disclosure of cash in hand before demonetization. The appeal was allowed, confirming the legitimacy of the cash deposits and negating the addition. Case-Laws Income Tax Wed, 03 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462894