Question And Answer
Subject: Sec.68 and Cash deposits in demonetisation period
Querist: Neha
Answered by: Reply of the Expert is awaited;
Tags: , , ,
Date: January 16, 2023
Query asked by Neha

Assessee is NBFC registered under Co Act as well as RBI. During the period of demonetization assessee co accepts cash in old currency amounting to Rs 1410000/- from the borrowers up to 14.11.2016 and from 15.11.2016 till 31.12.2016 amounting to Rs. 2010000/-. Ao has made addition U/sec. 68 on the ground that NBFC are not permitted to accept currency in Old Notes from any one and therefore the amount is unexplained cash credit to be added U/sec. 68, eventhough assessee co has given complete details of the persons from whom amount is received towards repayment of loan taken from NBFC.  Whether action of AO is justified ?

Pl guide .

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Reply of the Expert is awaited. Please check back later

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