Bank Cash Deposits Below Rs. 2 Lakh From Business Sales Not Unexplained Income Under Section 69A When Documented

Cash deposits in bank accounts were challenged by AO under section 69A as unexplained. Assessee demonstrated deposits originated from legitimate cash sales recorded in books of account, with complete documentation of purchases, sales, and inventory details. ITAT held that since individual cash transactions were below Rs. 2 lakh threshold, no customer PAN details were required. The tribunal accepted assessee's explanation that deposits during April-May 2019 were from regular business operations. CIT(A)/NFAC's reasoning was upheld, concluding section 69A provisions were inapplicable given proper documentation of source. Revenue's appeal dismissed as assessee successfully established nature and source of deposits through verifiable business records. .....

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