ITAT allowed the appeal against additions under section 68 for...

ITAT allowed the appeal against additions under section 68 for unexplained cash deposits during demonetization period. The assessing officer had accepted the assessee's entire sales and purchases as genuine but made additions claiming artificial scenarios where unaccounted income was shown as cash sales then deposited. ITAT found no evidence supporting the officer's observations. The assessee provided comprehensive documentation including day-wise cash books with customer names, party-wise purchase and sales registers with PAN details, and bank statements. The cash deposits were properly recorded as sales in profit and loss accounts and offered for taxation. ITAT relied on precedents establishing that where cash deposits from trading activities are supported by relevant evidence and accepted by tax authorities, such deposits cannot be treated as undisclosed income under sections 69A and 115BBE.

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