Addition of ₹20.44 Lakh as Unexplained Cash Deposits During Demonetization: ITAT Directs Fresh Adjudication

The ITAT has directed a fresh adjudication of additions made regarding unexplained cash deposits during demonetization. The case involved the tax department making additions to a taxpayer's income for cash deposits made during the demonetization period, deeming them unexplained. The ITAT found that the department had not properly considered the evidence provided by the taxpayer and directed a fresh adjudication. This decision emphasizes the need for thorough investigation and careful consideration of the evidence in cases involving demonetization-related deposits. It also reaffirms the taxpayer's right to contest the additions made by the tax authorities and highlights the need for a fair adjudication process when assessing such transactions.