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Informative

ITAT deletes ₹9.84 Lakh Addition u/s 69A after Verifying Cash Deposits Linked to ₹10 Lakh Earlier Withdrawal,

Update / Judgement Date

30 Sept 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderIncome Tax

The ITAT deleted a ₹9.84 lakh addition under Section 69A of the Income Tax Act after verifying that the cash deposits were linked to an earlier withdrawal of ₹10 lakh by the taxpayer. The tribunal found that there was no additional income involved, and the cash deposits were merely a redeposit of withdrawn funds. This ruling emphasizes the need for tax authorities to thoroughly investigate the source of deposits before making additions to income, reducing unnecessary tax liabilities for taxpayers.