#Demonetisation

ITAT Delhi rules that Section 115BBE of the Income Tax Act applies only post-01.04.2017, reducing a Rs. 1.49 crore addition to Rs. 5 lakh for cash deposits during demonetisation. The tribunal emphasised that regular business activities and cash sales in unorganised sectors justify a lower addition, setting a precedent for similar assessments.

Bombay High Court rules that demonetised currency notes seized before the exchange cut-off date but returned post-deadline must still be exchanged if their legitimacy is undisputed. The judgment protects citizens from procedural delays caused by state authorities, reinforcing natural justice under the Specified Bank Notes Act.

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.

ITAT Surat ruled that cash deposits during demonetization cannot be treated as explained income under Section 68 without documentary proof of source, identity, and creditworthiness. The tribunal also penalized violations of Sections 269SS and 269ST, reinforcing strict compliance for high-value cash transactions.

ITAT Ahmedabad rules that cash deposits during demonetisation cannot be automatically treated as unexplained income under Section 69A without evaluating prior sales trends and legitimate income estimates. The ruling mandates a contextual assessment, shifting the burden from presumptive addition to evidence-based scrutiny, impacting tax assessments for businesses and individuals.

Bombay High Court holds that seized currency notes beyond exchange deadline may still be exchanged if serial numbers are documented, affirming equitable relief under RBI rules.