https://www.taxtmi.com/caselaws?id=764116 The ITAT Lucknow allowed the assessee's appeal against unexplained cash credit additions under section 69A. The AO had presumed inflated sales during demonetization to account for unaccounted money deposits, but failed to provide evidence supporting bogus sales claims. Despite accepting the assessee's declared sales and purchases, and finding no deficiencies in books or stock availability, the AO made contradictory additions based solely on probability without cogent evidence. The tribunal held that sales accepted in VAT returns cannot be treated as concealed income, and hypothetical calculations ignoring submitted evidence were legally unjustified. en-us Tue, 31 Dec 2024 00:00:00 +0530 Fri, 03 Jan 2025 08:45:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764116 The ITAT Lucknow allowed the assessee's appeal against unexplained cash credit additions under section 69A. The AO had presumed inflated sales during demonetization to account for unaccounted money deposits, but failed to provide evidence supporting bogus sales claims. Despite accepting the assessee's declared sales and purchases, and finding no deficiencies in books or stock availability, the AO made contradictory additions based solely on probability without cogent evidence. The tribunal held that sales accepted in VAT returns cannot be treated as concealed income, and hypothetical calculations ignoring submitted evidence were legally unjustified. Case-Laws Income Tax Tue, 31 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764116