Cash Deposit From Prior Withdrawals a Substantiated Source: ITAT Partly Grants Relief of Rs.10.50...

The ITAT has partly granted relief of ₹10.50 lakh for a cash deposit during demonetization, ruling that cash deposits from prior withdrawals were a "substantiated source." This decision acknowledges that cash derived from legitimate past withdrawals from bank accounts is a valid explanation for subsequent cash deposits, even during a period like demonetization, which saw increased scrutiny. The ITAT's ruling emphasizes the need for tax authorities to consider verifiable sources of funds rather than making arbitrary additions, providing relief to taxpayers who can prove the origin of their cash.