The Appellate Tribunal rendered the following decision: The ...

Tribunal Rules 20% of Cash Deposits Taxable for Textile Firm; Deletes Sundry Creditor Additions; Upholds 10% Expense Disallowance.

December 2, 2024

Case Laws Income Tax AT

The Appellate Tribunal rendered the following decision: The assessee, engaged in textile and grey business with a turnover exceeding Rs. 1 crore, made cash deposits during the demonetization period. Considering the business nature and inability to substantiate the entire source, 20% of the total cash deposit was treated as unexplained income, taxable at normal rates, while the remaining 80% was deleted. Regarding sundry creditors addition, the Tribunal directed deletion due to lack of verification by lower authorities despite the assessee providing account confirmations and sample purchase bills. The 10% ad hoc disallowance of expenses was upheld as the assessee did not offer income u/s 44AD, and the disallowance ratio was reasonable considering the nature of expenses.

View Source

← Previous Next →

The Appellate Tribunal rendered the following decision: The ...

Tribunal Rules 20% of Cash Deposits Taxable for Textile Firm; Deletes Sundry Creditor Additions; Upholds 10% Expense Disallowance.

December 2, 2024

Case Laws Income Tax AT

You may also like:

Ad-hoc disallowance of 20% of the creditor value – there is no provision in the Act to disallow 20% out of sundry creditors. - AT

The assessee's unexplained cash credits u/s 68 were deleted by the CIT(A) after accepting the submissions that the cash receipts from various sources like cash sales,...

Addition u/s 69A - unexplained income - cash deposits made into bank account during demonetization period - assessee neither furnished stock summary nor bills/vouchers...

Cash credit u/s 68 r.w.s. 115BBE - cash deposit during demonetization period - assessee's failure to maintain books of accounts u/s 44AD. Held that where exemption from...

The ITAT Bangalore addressed unexplained cash deposits u/s 69A, focusing on the credibility of earlier withdrawals as a source for redeposits. The Tribunal examined fund...

The assessee's contentions were upheld by the Tribunal regarding various additions made by the Assessing Officer. The Tribunal ruled that the RTGS transfer from the...

Additions against Cash deposits made during demonetization period in specified bank notes - assessee has been consistently holding huge cash balance which meets the...

The ITAT held that the reopening of assessment u/s 147 based on cash deposits during the year was invalid. The assessee demonstrated the source of cash deposits by...

Unexplained cash deposits in bank - receipt of rental deposits in cash - The fact remains that the cash rental deposits have been received by the assessee which is not...

Cash deposits made post demonetization represented unaccounted income of the assessee qua AY 2017-2018 - Having regard to the extensive material which has been examined...

The Appellate Tribunal considered the issue of condonation of delay in filing appeals, which exceeded 400 days, due to unexplained cash deposits and protective additions...

Addition u/s 69A - unexplained cash deposits in the bank account - onus to prove - The Tribunal noted that the appellant had provided evidence to support the source of...

Cash deposits made during demonetization period from cash withdrawals and rental income received in cash were substantiated through cash flow statements and bank...

Unexplained deposits in cash in bank - assessee's father was the owner of agriculture land and the said cash was deposited partly out proceeds from sale of agriculture...

Unexplained investment u/s 69 - cash deposit - the alleged transactions of cash deposits and corresponding entries of cheque issued were not in the nature of any...

Quick Updates: