ITAT Deletes ₹11.18 Lakh Demonetization Addition: NRI’s Cash Deposit Accepted as Genuine US Remittance [Read Order]

The Income Tax Appellate Tribunal (ITAT) has deleted an addition of ₹11.18 lakh made by the tax department during the demonetization period, ruling that the cash deposit by a non-resident Indian (NRI) was a genuine remittance from the United States.

The case involved an NRI who had deposited cash during the demonetization window. The tax authorities had treated the deposit as unexplained income and added it to the taxpayer's income.

The ITAT, after examining the evidence, found that the NRI had sufficient explanation for the source of funds. The tribunal noted that the deposit was supported by documentation showing it was a remittance from the US.

In its order, the ITAT held that the addition was not justified and directed the deletion of the ₹11.18 lakh from the taxpayer's income. The decision provides relief to NRIs who made genuine cash deposits during demonetization.