ITAT reversed AO's additions under s.68 for unexplained bank ...

Bank Deposits Cannot Be Taxed Under Section 68 Without Considering Corresponding Withdrawals From Same Account

February 24, 2025

Case Laws Income Tax AT

ITAT reversed AO's additions under s.68 for unexplained bank deposits, finding that while deposits were added as unexplained income, corresponding withdrawals from the same account were not considered in assessment. The tribunal held that additions were unsustainable given the pattern of deposits and withdrawals evidenced in bank statements. Additionally, penalty of Rs.10,000 imposed under s.271(1)(b) for non-appearance was deleted, as AO had provided unreasonably short notice period of one day for appearance. Both issues decided in favor of appellant, with tribunal emphasizing need to consider complete banking transaction patterns and provide reasonable compliance timeframes.

View Source

← Previous Next →

ITAT reversed AO's additions under s.68 for unexplained bank ...

Bank Deposits Cannot Be Taxed Under Section 68 Without Considering Corresponding Withdrawals From Same Account

February 24, 2025

Case Laws Income Tax AT

You may also like:

Section 68 addition for cash deposits cannot be made where assessee filed return u/s 44AD and did not maintain books of accounts, as provisions of section 68 apply only...

The assessee, a septuagenarian gynecologist with no business income during the year, made cash deposits totaling Rs. 10 lakh in her bank account during demonetization....

Unexplained cash deposits in bank account - The claim of the assessee remained as a bald claim only followed by no evidence. Why the depositors will deposit their funds...

Addition on account of cash deposited in bank - AO cannot on one hand take all the deposits as income of the assessee without giving the benefit of withdrawal. The...

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...

Unexplained money u/s 69A - cash deposit in the Saving Bank Account - Since the assessee has not disclosed this bank account in the return of income, therefore, deposit...

The ITAT Delhi held that the addition for unexplained investment made to a company was unjustified. The Tribunal found that the total investments were made through a...

Unexplained cash deposits - Deposits in regular bank account of the assessee, during demonetization period - the assessee was maintaining complete stock tally, the sales...

Undisclosed bank deposits - The withdrawal of the amount from the bank can be considered as a source for re-depositing if the assessee can fully satisfy the AO that the...

The ITAT Delhi held that the CIT(A) erred in presuming all cash deposits as business receipts u/s 44AD. The CIT(A) treated deposits as business receipts and applied 8%...

Unexplained deposits in bank account - Amount deposited in the bank account was out of sale of various items as held by the assessee as stock in trade and since the...

Addition on account of cash deposit in the bank account - It is not explained why assessee was making deposits in his bank account on different dates of different amount...

Unexplained cash credit - addition of cash deposit in bank account - It is important to mention here that the bank statements cannot be termed as books of accounts for...

Addition u/s 69A - cash deposit in the bank account - entire amount of withdrawal was re-deposited - This conduct is a normal conduct of a man ordinary prudent which...

Unexplained Cash withdrawn out of bank account - Gap between withdrawal and deposit of the cash - The heafty amount was withdrawn 70 days ago for utilising the same for...

Quick Updates: