#burden of proof tax

ITAT Delhi rules that cash deposits during demonetization, sourced from prior bank withdrawals (e.g., salary income), cannot be taxed as unexplained income under Section 69A without evidence of diversion or unaccounted utilization. The ruling shifts the burden of proof to the tax authorities to establish diversion, reinforcing taxpayer rights in banking transactions.

Allahabad High Court rules that cash deposits during demonetisation cannot be taxed under Section 68 if the assessee proves the source as pre-existing cash in hand, and the Assessing Officer fails to rebut with evidence. The judgment reinforces the burden of proof on tax authorities to disprove the assessee's explanation, even during extraordinary periods like demonetisation.