SATHI MANGAYAMMA,EAST GODAVARI DIST vs. INCOME TAX OFFICER, WARD-2, KAKINADA

Facts

The assessee's appeal arises from an order that sustained additions made by the Assessing Officer (AO) based on cash deposits in her bank account during the demonetization period and other credits. The AO treated certain credits as business receipts and estimated profit at 8%, while cash deposits were considered unexplained money under Section 69A.

Held

The Tribunal held that the claim that cash deposits were sourced from cash in hand or business sale proceeds during demonetization was unsubstantiated. The Tribunal also addressed the applicability of the enhanced tax rate under Section 115BBE, concluding that the pre-amended rate of 30% should apply to the income determined under Section 69A for the assessment year in question.

Key Issues

Whether cash deposits during demonetization were sourced from unexplained money, and whether the amended Section 115BBE applied to the assessment year.