https://www.taxtmi.com/caselaws?id=773345 The HC allowed the appeal and deleted the addition of Rs. 12,04,000/- made under Section 68 as unexplained cash credit. The assessee, a Credit Co-operative Society, had furnished comprehensive evidence including names of depositors, ledger accounts, receipts, and audited books to explain cash deposits during demonetization period as loan repayments from members. The Revenue authorities rejected this explanation solely based on data analysis showing surge in cash repayments, without verifying the documentary evidence. The HC held that rejection based purely on statistical inference and assumptions, without finding infirmity in furnished evidence, was arbitrary and against due process. The Court emphasized that data analysis cannot substitute evidentiary verification and unusual transaction patterns during demonetization don't automatically indicate concealment. en-us Fri, 25 Apr 2025 00:00:00 +0530 Fri, 20 Jun 2025 12:38:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773345 The HC allowed the appeal and deleted the addition of Rs. 12,04,000/- made under Section 68 as unexplained cash credit. The assessee, a Credit Co-operative Society, had furnished comprehensive evidence including names of depositors, ledger accounts, receipts, and audited books to explain cash deposits during demonetization period as loan repayments from members. The Revenue authorities rejected this explanation solely based on data analysis showing surge in cash repayments, without verifying the documentary evidence. The HC held that rejection based purely on statistical inference and assumptions, without finding infirmity in furnished evidence, was arbitrary and against due process. The Court emphasized that data analysis cannot substitute evidentiary verification and unusual transaction patterns during demonetization don't automatically indicate concealment. Case-Laws Income Tax Fri, 25 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773345