Cash Deposits made from Sale Proceeds: ITAT directs Deletion of S.69 Income Tax Additions

The Income Tax Appellate Tribunal (ITAT), Visakhapatnam, directed the Assessing Officer (AO) to delete additions made under Section 69A read with Section 115BBE of the Income Tax Act, 1961. The case involved cash deposits in the assessee’s bank accounts, which were found to be from sale proceeds. The assessee provided documentary evidence to support the claim that the deposits were legitimate and not unexplained income. The ITAT ruled that the AO had incorrectly classified the deposits as unexplained, leading to the deletion of the additions. This decision underscores the importance of proper documentation in substantiating the source of cash deposits.