|Question And Answer
|Sec.68 and Cash deposits in demonetisation period
|Reply of the Expert is awaited;
|cash credits, demonetisation, Section 68, Unexplained cash credit
|January 16, 2023
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 .
Reply of the Expert is awaited. Please check back later