https://www.taxtmi.com/caselaws?id=751014 ITAT Ahmedabad upheld rejection of books of accounts under section 145(3) but overturned addition of cash sales as unexplained cash credit under section 68. The tribunal held that once books are rejected, income must be determined through best judgment assessment under section 144, not by treating sales amounts as unexplained cash credits, which would constitute double addition. The AO erred in treating cash deposits during demonetization as both sales and unexplained cash credit. The tribunal directed that cash sales amount should be reduced from total sales with balance subject to estimation-based taxation. en-us Wed, 03 Apr 2024 00:00:00 +0530 Fri, 05 Apr 2024 09:54:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751014 ITAT Ahmedabad upheld rejection of books of accounts under section 145(3) but overturned addition of cash sales as unexplained cash credit under section 68. The tribunal held that once books are rejected, income must be determined through best judgment assessment under section 144, not by treating sales amounts as unexplained cash credits, which would constitute double addition. The AO erred in treating cash deposits during demonetization as both sales and unexplained cash credit. The tribunal directed that cash sales amount should be reduced from total sales with balance subject to estimation-based taxation. Case-Laws Income Tax Wed, 03 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751014