Case Law Analysis
|Income Tax Appellate Tribunal
Section 69A IT Act | Cash Deposits from Documented Sales During Demonetization Not Unexplained Income If Profits Already Taxed: ITAT Ahmedabad
ITAT Ahmedabad ruled that cash deposits made during demonetization cannot be taxed as unexplained income under Section 69A if the assessee proves the funds arose from genuine, recorded sales with supporting documentation, and the corresponding profits were already offered to tax. This prevents double taxation and affirms that proper bookkeeping overrides suspicion, offering critical relief to cash-intensive businesses like jewellery retailers.