Unaccounted Deposits Are Liabilities, Not Income, u/s 68 of the Income Tax Act: ITAT Deletes ₹66 Lakh Addition [Read Order]
The Tribunal held that the mere absence of accounting entries cannot convert a liability into income, especially when the underlying transaction structure and evidence point to a genuine commercial arrangement.
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has quashed additions totalling ₹1.05 crore, holding that the alleged cash deposits were, in fact, customer liabilities and not taxable income. The case arose out of a search and seizure operation conducted under Section 132 of the Act on 24 November 2016 against Sakthi Finance…
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