Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Cash Deposits from Business Income during Demonetization cannot be treated as Unexplained Entirely: ITAT upholds 20% of Additions due to Unknown Source
The ITAT upheld a 20% addition for cash deposits from business income during demonetization, rejecting the entire amount as unexplained. The case involved a taxpayer who had made cash deposits during the demonetization period. While the taxpayer claimed that these were legitimate business receipts, the tax authorities contested the source. The tribunal ruled that 20% of the deposits should be considered unexplained, while the remaining 80% could be linked to legitimate business activities. This ruling highlights the importance of documenting cash receipts and the need for taxpayers to demonstrate the legitimacy of large cash deposits during periods of high scrutiny.