https://www.taxtmi.com/caselaws?id=752588 The ITAT Chandigarh allowed the assessee's appeal regarding cash deposits made during demonetization. The AO had added these deposits to taxable income under section 68, treating them as unexplained cash credits. The assessee explained the deposits originated from cash sales, supported by cash books, bank statements, VAT returns, and audited accounts. The ITAT held that merely higher cash deposits compared to previous years cannot justify rejecting the explanation without identifying specific defects in documentation or stock availability. Since cash sales were already offered to tax and VAT was paid, taxing the cash realization would constitute impermissible double taxation. en-us Wed, 20 Mar 2024 00:00:00 +0530 Tue, 14 May 2024 06:53:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752588 The ITAT Chandigarh allowed the assessee's appeal regarding cash deposits made during demonetization. The AO had added these deposits to taxable income under section 68, treating them as unexplained cash credits. The assessee explained the deposits originated from cash sales, supported by cash books, bank statements, VAT returns, and audited accounts. The ITAT held that merely higher cash deposits compared to previous years cannot justify rejecting the explanation without identifying specific defects in documentation or stock availability. Since cash sales were already offered to tax and VAT was paid, taxing the cash realization would constitute impermissible double taxation. Case-Laws Income Tax Wed, 20 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752588