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Demonetization Deposit of 2.47 Crore, Tax Department Caught, ITAT Provides Relief After 10 Years.
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News18•30-09-2026, 18:09
Demonetization Deposit of 2.47 Crore, Tax Department Caught, ITAT Provides Relief After 10 Years.
- •A Rohini-based pharmaceutical businessman deposited 2.47 crore during demonetization, leading to scrutiny from the Income Tax Department.
- •The businessman claimed a large portion came from cash sales of his medicine business, submitting audited accounts, VAT returns, and sales records.
- •The Income Tax Officer deemed the entire deposit unexplained income under Section 68, a decision upheld by the Income Tax Commissioner.
- •The ITAT noted that tax authorities found no specific irregularities in the businessman's records, accepting 1.64 crore from cash sales.
- •For the remaining 83.7 lakh, including 72 lakh from family, the businessman provided documentation, leading the ITAT to grant relief on the entire 2.47 crore.
Key Questions Answered
A pharmaceutical businessman residing in Rohini, Delhi, deposited a total of ₹2,47,91,057 in cash across three savings accounts during demonetization.
The businessman submitted audited accounts, VAT returns, sales records, and sales bills showing that ₹1,64,37,357 came from cash sales of his medicine business.
The ITAT granted relief because the tax authorities failed to point out concrete irregularities in the submitted records, and the businessman provided proper documentation for both business sales and funds received from family members.
