https://www.taxtmi.com/caselaws?id=422881 Cash deposits, including an alleged advance, and the related expenditure disallowance were not sustained on merits because the Assessing Officer had not made adequate independent inquiry into the genuineness of the transaction, the continuation of the payee's business, or the linkage between the deposits and the business receipts. The Tribunal also noted the risk of double addition where gross receipts, cash deposits, and disallowed expenditure may overlap, requiring proper verification. As the assessee had produced supporting material for the expenditure but the evidentiary details were not satisfactorily examined, the additions and disallowance were set aside for fresh adjudication after giving the assessee an opportunity to substantiate the transactions. en-us Sat, 23 Apr 2022 00:00:00 +0530 Wed, 25 May 2022 09:08:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422881 Cash deposits, including an alleged advance, and the related expenditure disallowance were not sustained on merits because the Assessing Officer had not made adequate independent inquiry into the genuineness of the transaction, the continuation of the payee's business, or the linkage between the deposits and the business receipts. The Tribunal also noted the risk of double addition where gross receipts, cash deposits, and disallowed expenditure may overlap, requiring proper verification. As the assessee had produced supporting material for the expenditure but the evidentiary details were not satisfactorily examined, the additions and disallowance were set aside for fresh adjudication after giving the assessee an opportunity to substantiate the transactions. Case-Laws Income Tax Sat, 23 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422881