https://www.taxtmi.com/caselaws?id=769701 The ITAT Chandigarh allowed the assessee's appeal against an addition of Rs. 1.40 crores under Section 69A. The AO had assumed sales inflation to explain cash deposits post-demonetization, despite accepting the assessee's books of account. The tribunal found no material evidence supporting inflated sales or unaccounted cash deposits. The assessee's cash book, stock register, and VAT records were properly maintained without discrepancies. The tribunal noted that Diwali festivities during demonetization period explained higher sales compared to previous years. Since turnover, stock records, and cash flow were adequately explained with supporting evidence, the addition based on assumptions was deleted. en-us Tue, 22 Apr 2025 00:00:00 +0530 Wed, 30 Apr 2025 08:38:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769701 The ITAT Chandigarh allowed the assessee's appeal against an addition of Rs. 1.40 crores under Section 69A. The AO had assumed sales inflation to explain cash deposits post-demonetization, despite accepting the assessee's books of account. The tribunal found no material evidence supporting inflated sales or unaccounted cash deposits. The assessee's cash book, stock register, and VAT records were properly maintained without discrepancies. The tribunal noted that Diwali festivities during demonetization period explained higher sales compared to previous years. Since turnover, stock records, and cash flow were adequately explained with supporting evidence, the addition based on assumptions was deleted. Case-Laws Income Tax Tue, 22 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769701