CURRENT AFFAIRS

Detailed explanation-1: -ITAT Bangalore held that cash deposited on account of cash sales during demonetization period cannot be added as unexplained under section 68 of the Income Tax Act as AO didn’t rejected the books of accounts nor brough anything contrary on records to show that cash sales is not the source for cash deposit.

Detailed explanation-2: -i) Cash deposit in a bank account or post office exceeding Rs. 50,000 on any one day requires quoting of PAN on mandatory basis (with exceptions given in proviso to rule 114B). ii) Cash deposit aggregating to more than Rs. 2,50,000 from 09.11.

Detailed explanation-3: -Bank Transactions: Every bank has to report cash deposits and cash withdrawal transactions of Rs 50 lakh or more in a financial year for current accounts, and Rs 10 lakh for savings accounts.

Detailed explanation-4: -The growth of Income Tax collections in the Pre-demonetisation two years was 6.6% and 9%. Post-demonetisation, the collections increased by 15% and 18% in the next two years.