Cash Deposits During Demonetization from Amul Parlour Sales: ITAT Accepts Source, Deletes Rs. 27.37 Lakh Addition [Read Order]
The tribunal held that the cash deposits made during the demonetization period were duly explained as arising from regular cash sales at the assessee’s Amul Parlour
![Cash Deposits During Demonetization from Amul Parlour Sales: ITAT Accepts Source, Deletes Rs. 27.37 Lakh Addition [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Demonetization-.jpg "Cash Deposits During Demonetization from Amul Parlour Sales: ITAT Accepts Source, Deletes Rs. 27.37 Lakh Addition [Read Order]")
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) deleted an addition of Rs. 27,37,800 and ruled that the cash deposits made during the demonetization period were explained as arising from regular cash sales at the assessee’s Amul Parlour. Rajnikant Vithaldas Patel (the assessee), engaged in the business of retail trading in milk and milk products through an Amul Parlour,...
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) deleted an addition of Rs. 27,37,800 and ruled that the cash deposits made during the demonetization period were explained as arising from regular cash sales at the assessee’s Amul Parlour.
Rajnikant Vithaldas Patel (the assessee), engaged in the business of retail trading in milk and milk products through an Amul Parlour, had deposited cash in his bank account during the demonetization.
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The Assessing Officer (AO) observed cash deposits of Rs. 76,20,300 during the demonetization period. The AO treated Rs. 27,37,800 as unexplained money and made an addition under Section 69A of the Income Tax Act.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal was dismissed ex parte due to non-compliance and the addition was upheld by the CIT(A).
Aggrieved by the order of CIT(A), the assessee filed an appeal before the ITAT. The tribunal comprising Dr. B.R.R. Kumar (Vice President) and Siddhartha Nautiyal (Judicial Member) observed that the total sales during the year amounted to Rs. 9.47 crore (including milk sales of Rs. 9.45 crore and paneer sales of Rs. 2.34 lakh).
The tribunal observed that the cash deposited was out of regular sales proceeds. The tribunal observed that the assessee had deposited Rs. 4.13 crore in cash during the year, of which only Rs. 76.20 lakh was deposited during the demonetization.
The tribunal held that the assessee had satisfactorily explained the cash deposits as arising from disclosed business sales. The tribunal observed that the AO had not provided any reasoning for rejecting the explanation or disproving the source of funds.
The tribunal deleted the addition of Rs. 27,37,800 made by the AO by accepting the source of Sales in Amul Parlour. The appeal of the assessee was allowed.
To Read the full text of the Order CLICK HERE
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