ITAT held in favor of the assessee, rejecting the Assessing...

ITAT held in favor of the assessee, rejecting the Assessing Officer's (AO) arbitrary rejection of books of accounts. The tribunal found that the assessee provided comprehensive documentation, including audited financial statements, VAT and service tax returns, and stock registers. The AO's suspicion of sales during demonetization was deemed unjustified, particularly given the nature of the assessee's tobacco and perfumery products. The tribunal criticized the AO's approach of challenging cash sales without proper verification and noted inherent arbitrariness in partially accepting sales figures. Consequently, the tribunal deleted the impugned addition and allowed the assessee's appeal, emphasizing the need for substantive inquiry before challenging accounting records.