ITAT Deletes Demonetisation Cash Addition

The Income Tax Appellate Tribunal, Delhi Bench, deleted an addition of ₹1.07 crore made under Section 68 of the Income-tax Act in respect of cash deposits during the demonetisation period. 

The Tribunal held that once the cash deposits are traceable to recorded cash sales, duly maintained books of account and an undisputed cash balance, the Revenue cannot selectively treat the deposits as unexplained while simultaneously accepting the underlying turnover and business records.