Re-Deposits of Cash in Hand during Demonetisation: ITAT deletes ₹18.25 Lakh Addition

The Income Tax Appellate Tribunal (ITAT) deleted an addition of ₹18.25 lakh related to cash deposits made during the demonetization period. The case involved the assessee re-depositing cash in hand during the demonetization period, which the Assessing Officer (AO) had added as unexplained income. The ITAT found that the assessee had provided sufficient evidence to explain the source of the cash deposits, including bank statements and cash books. The tribunal concluded that the AO had not properly considered the evidence and deleted the addition. This ruling highlights the importance of maintaining proper records and documentation to support cash deposits, especially during periods of regulatory changes like demonetization. Taxpayers should ensure they have adequate evidence to explain their financial transactions to avoid similar disputes.