https://www.taxtmi.com/caselaws?id=762201 ITAT Chandigarh dismissed the Department's appeal regarding unexplained cash deposits during demonetization. The assessee had made substantial sales from a smaller station compared to larger locations. The CIT(A) had deleted the addition made by the AO. ITAT held that once purchases and stock were accepted, sales from such stock could not be denied. Since the AO had not rejected the books of account and had accepted cash sales subject to VAT, adding the same cash deposits would constitute double taxation. The assessee provided adequate documentation including VAT returns, audited accounts, and trading statements. The explanation was found genuine and reasonable, upholding the CIT(A)'s decision. en-us Fri, 14 Jun 2024 00:00:00 +0530 Tue, 26 Nov 2024 17:13:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762201 ITAT Chandigarh dismissed the Department's appeal regarding unexplained cash deposits during demonetization. The assessee had made substantial sales from a smaller station compared to larger locations. The CIT(A) had deleted the addition made by the AO. ITAT held that once purchases and stock were accepted, sales from such stock could not be denied. Since the AO had not rejected the books of account and had accepted cash sales subject to VAT, adding the same cash deposits would constitute double taxation. The assessee provided adequate documentation including VAT returns, audited accounts, and trading statements. The explanation was found genuine and reasonable, upholding the CIT(A)'s decision. Case-Laws Income Tax Fri, 14 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762201