Notice of demonetisation period bank transactions

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60 Points Posted on 04 January 2020
can you please give me case laws relating to the facts of this case
1. Assessee disclosed the bank transactions happened in period of demonetisation in books of accounts and regarding that IT dept produced a notice stating that there is unexplained transactions in BOA/C and added back to profits.
2.My query is...
whether department action of adding back such unexplained amounts to profits is correct?? because it has already been included in BOA/C and some amount was explained and some amount not explained but everything was disclosed in ITR.
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On 04 January 2020 at 23:48 Report
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Quick Summary
This discussion seeks case law regarding bank transactions during the demonetisation period. The core issue is whether the IT department is correct in adding back amounts to profits that were already disclosed in the books of accounts and ITR, even if some portions were unexplained. The conversation touches upon the need to prove the identity, creditworthiness, and genuineness of creditors for cash sales, and the potential violation of RBI circulars regarding the acceptance of old SBNs.

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12244 Points Posted on 05 January 2020
You need explain about the transactions recorded in the boa such as identity of the creditors, creditworthiness of the creditors and genuineness of transactions. if you failed to prove even anyone of the above conditions it will be treated as unexplained and charged to income-tax under other sources
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On 05 January 2020 at 02:19
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60 Points Posted on 05 January 2020
Thanks for your early reply @ rama krishnana ji
He has made a genuine transactions in the form of cash sales and for that how we can give an explanation for such.
If you find any case law relating to the facts above please let me know.
Thanks in advance.
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On 05 January 2020 at 09:21
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INCOME TAX OFFICER
1736 Points Posted on 05 January 2020
As per rbi circular, only specific business people had been allowed to accept sbns(500 &1000) . When that's the case how could your client sold stocks against SBN in violation to RBI circular? Relying on RBI circular, cash deposit in sbn should've been considered as unexplained (I think so). However there are case laws in favor of assessee. Once if I get it, I'll post it
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On 05 January 2020 at 12:14
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72 Points Posted on 05 January 2020
Dear sir, I have same query, tell me also case law in case client may take 500 and 1000 note in demonetisation period. on things more I have mentioned in reply received cash in demonetisation period instead of deposit, kindly tell me remedy for appeal in cit.
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On 05 January 2020 at 16:45

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