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Hyderabad ITAT Deletes 69A Addition on Wedding Cash, Rejects 60% Tax Rate for AY 2017-18

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Summary

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  • The Hyderabad ITAT has deleted a ₹19,54,500 addition under Section 69A, ruling that cash withdrawn for a wedding cannot be deemed unexplained merely due to its installment deposits.
  • The Tribunal emphasized that the Revenue failed to provide evidence showing the cash was spent or unavailable when deposited, countering mere suspicion.
  • Additionally, the ITAT rejected the application of a 60% tax rate under Section 115BBE for AY 2017-18, aligning with previous rulings on the matter.
  • This decision reinforces taxpayer rights and clarifies standards for demonstrating cash availability during scrutiny assessments.

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