https://www.taxtmi.com/caselaws?id=772684 ITAT Mumbai allowed the assessee's appeal and deleted the entire addition made under Section 68. The AO had disputed cash sales ratio by comparing previous years' data and made an ad-hoc addition using a formula limiting cash sales to 15%, despite the assessee furnishing stock registers and sale/purchase records that remained undisputed. CIT(A) granted partial relief of 20 lakhs but sustained addition of 10,43,011 without proper reasoning regarding PMGKY declarations. ITAT found no justification for the ad-hoc addition as no adverse evidence was brought on record and no factual investigation was conducted on the assessee's evidence. en-us Tue, 27 May 2025 00:00:00 +0530 Thu, 12 Jun 2025 07:21:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772684 ITAT Mumbai allowed the assessee's appeal and deleted the entire addition made under Section 68. The AO had disputed cash sales ratio by comparing previous years' data and made an ad-hoc addition using a formula limiting cash sales to 15%, despite the assessee furnishing stock registers and sale/purchase records that remained undisputed. CIT(A) granted partial relief of 20 lakhs but sustained addition of 10,43,011 without proper reasoning regarding PMGKY declarations. ITAT found no justification for the ad-hoc addition as no adverse evidence was brought on record and no factual investigation was conducted on the assessee's evidence. Case-Laws Income Tax Tue, 27 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772684