lTAT Deletes Addition of Rs. 16,80,000 for SBN Deposits from Liquor Sales, Citing Exceptional Circumstances

ITAT Deletes Addition for SBN Deposits from Liquor Sales The ITAT deleted an income addition of ?16,80,000 related to Specified Bank Notes (SBN) deposits, which arose from the sales of liquor during demonetization. The tribunal accepted the taxpayer’s argument that the deposits were part of regular sales and that exceptional circumstances, such as the demonetization period, justified the SBN deposits. The AO had treated these deposits as unexplained income, but the tribunal found that the explanation provided by the taxpayer was reasonable and supported by evidence. As a result, the addition was deleted, and the ITAT’s ruling highlights the importance of considering exceptional situations while assessing tax liabilities.