https://www.taxtmi.com/caselaws?id=753188 ITAT Delhi allowed the assessee's appeal on both grounds. Regarding the Rs. 70,00,000 addition under Section 68 for alleged jump in sales, the tribunal found no abnormal monthly sales variation and that cash deposits matched the submissions, making the addition factually incorrect. For the Section 40A(3) disallowance concerning cash purchases exceeding Rs. 20,000 on single days, the AO failed to identify specific instances despite Rs. 43,00,000 total cash purchases representing only 2.6% of Rs. 17.42 crore turnover for petty neighboring shop purchases, with audit reports showing no contraventions. en-us Fri, 24 May 2024 00:00:00 +0530 Tue, 28 May 2024 07:35:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753188 ITAT Delhi allowed the assessee's appeal on both grounds. Regarding the Rs. 70,00,000 addition under Section 68 for alleged jump in sales, the tribunal found no abnormal monthly sales variation and that cash deposits matched the submissions, making the addition factually incorrect. For the Section 40A(3) disallowance concerning cash purchases exceeding Rs. 20,000 on single days, the AO failed to identify specific instances despite Rs. 43,00,000 total cash purchases representing only 2.6% of Rs. 17.42 crore turnover for petty neighboring shop purchases, with audit reports showing no contraventions. Case-Laws Income Tax Fri, 24 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753188