Bullion Traders’ Demonetisation Cash Deposits Found Genuine: ITAT Deletes ₹924 Crore Addition under Section 68

The ITAT ruled in favor of a group of bullion traders, deleting a ₹924 crore addition made under Section 68 of the Income Tax Act for cash deposits during the demonetisation period. The Assessing Officer had alleged that these deposits were unexplained, but the traders provided detailed records including sales ledgers, inventory movements, prior cash balances, and audit reports to justify the genuineness of the transactions. The Tribunal found the AO's approach arbitrary and lacking factual appreciation. It held that merely depositing cash during demonetisation does not automatically render it suspicious, especially when backed by valid documentation. The decision emphasizes the need for evidence-based assessments and fair evaluation of business practices during demonetisation.