https://www.taxtmi.com/caselaws?id=768735 The ITAT Ahmedabad ruled in favor of the assessee, reversing AO's additions under section 68 for unexplained cash deposits and rejection of books under section 145(3). The AO had estimated higher GP rate (0.36% vs 0.13% declared) and treated cash deposits as unexplained cash credit taxable under section 115BBE. CIT(A) found books were properly audited and maintained with no defects, suppression of sales, or stock discrepancies. The AO failed to conduct independent enquiries, cross-verify sales with buyers, or examine consistency with VAT returns. Since assessee satisfactorily explained cash deposit sources through books and supporting evidence, burden shifted to AO to disprove, which was not done. Additions based on mere suspicion without evidence were unsustainable. en-us Wed, 09 Apr 2025 00:00:00 +0530 Sat, 12 Apr 2025 08:39:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768735 The ITAT Ahmedabad ruled in favor of the assessee, reversing AO's additions under section 68 for unexplained cash deposits and rejection of books under section 145(3). The AO had estimated higher GP rate (0.36% vs 0.13% declared) and treated cash deposits as unexplained cash credit taxable under section 115BBE. CIT(A) found books were properly audited and maintained with no defects, suppression of sales, or stock discrepancies. The AO failed to conduct independent enquiries, cross-verify sales with buyers, or examine consistency with VAT returns. Since assessee satisfactorily explained cash deposit sources through books and supporting evidence, burden shifted to AO to disprove, which was not done. Additions based on mere suspicion without evidence were unsustainable. Case-Laws Income Tax Wed, 09 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768735