Unexplained cash deposits - Deposits in regular bank account of ...

Court Rules Cash Deposits from Sales During Demonetization Justified; Additions by Tax Authorities Overturned.

April 12, 2022

Case Laws     Income Tax     AT

Unexplained cash deposits - Deposits in regular bank account of the assessee, during demonetization period - the assessee was maintaining complete stock tally, the sales were recorded in the regular books of accounts and the amount was deposited in the bank account out of the sale proceeds - Sales made by the assessee to cover the cash deposited in the bank post demonetization, was sufficient source of the cash deposited i.e; the sales from the existing stock available with the assessee and was well explained, therefore, the addition made by the AO and sustained by the Ld. CIT(A) was not justified. - AT

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