S.68 of Income Tax Act not Attracted on Violation of RBI Notifications if Nature of Cash Deposit Adequately Explained: ITAT

The ITAT ruled that Section 68 of the Income Tax Act, which deals with unexplained cash credits, cannot be invoked merely because a cash deposit violates RBI notifications. If the nature and source of the cash deposit are adequately explained, the provisions of Section 68 will not apply. This judgment reinforces the principle that transparency in explaining financial transactions can prevent the invocation of harsh provisions like Section 68.