Amount transferred from Current Account to Deposit Account to maintaining shortfall of Accounts cannot be consider Income of Assessee: ITAT deletes Addition [Read Order]

The Chennai bench of Income Tax Appellate Tribunal (ITAT) dismissed the revenue's appeal, stating that the amount transferred from the current account to maintain the shortfall couldn't be considered as the assessee's income. Aaditra Foundations, a real estate and civil work firm, saw its PAN surrendered in 2017 due to business closure. \r

The deposited amount included partner contributions and sweep credits, with surplus funds moved to deposits. As the current account fluctuated, funds were cyclically transferred. ITAT's Mahavir Singh and Manoj Kumar Aggarwal ruled against the revenue, affirming that these deposits weren't taxable income.