Jewellery Owner’s Late ITR Filing Rejected: ITAT Upholds Addition of Demonetization Period Deposits Due to Lack of Justification

The ITAT rejected late Income Tax Return (ITR) filings by jewelry owners during the demonetization period, upholding additions made for unexplained cash deposits. The tribunal found no substantial justification for the deposits made during this period. The taxpayers argued the deposits represented legitimate sale proceeds, but failed to provide adequate documentary proof. ITAT emphasized that mere assertions cannot replace corroborative evidence, particularly in cases involving significant cash transactions during demonetization. The ruling highlights the heightened scrutiny of financial activities conducted during this period, aimed at curbing black money. Legal experts interpret this decision as reinforcing the need for taxpayers to provide consistent, verifiable explanations to avoid adverse outcomes. Analysts believe the ruling strengthens the government’s efforts to promote transparency and accountability in the tax system.