ITAT Deletes Addition Over Rs 3.69 Cr Bank Deposits
In short
The Income Tax Appellate Tribunal deleted a tax addition tied to Rs 3.69 crore in bank deposits for a woman handling cash for bangle traders.
The tribunal said cash linked to a commission-based business cannot be treated as unexplained income unless there is proof the money belonged to the taxpayer. That cut the tax demand against her.
What the reporting says
The Income Tax Appellate Tribunal deleted an addition over Rs 3.69 crore in bank deposits linked to a woman handling cash for bangle traders. The tribunal held that cash deposits tied to a commission-based business cannot be treated as unexplained income under Section 69A without evidence that the money belonged to the taxpayer. The ruling removed the tax addition against her.
Why it matters
The Income Tax Appellate Tribunal deleted an addition related to Rs 3.69 crore in bank deposits for a woman handling cash for bangle traders. The tribunal said cash deposits from a commission-based business cannot be taxed as unexplained income under Section 69A unless there is evidence that the funds actually belonged to the taxpayer. The ruling favours the taxpayer in this tax dispute.