Corporate TaxArticle·27 April 2026
Cash Deposit Explained
By J the App
Executive Summary
The ITAT held that where an NRI demonstrates a plausible and consistent explanation supported by travel history, remittances, and family circumstances, addition under unexplained cash provisions cannot be sustained merely on suspicion.
It emphasized that elderly parents cannot be expected to maintain strict financial records. The addition was deleted, rendering consequential taxation under Section 115BBE infructuous.
Issues for Determination
The primary issue was whether cash deposits during demonetisation could be treated as unexplained i...
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