https://www.taxtmi.com/caselaws?id=774978 The ITAT Patna allowed the assessee's appeal regarding unexplained cash deposits during demonetization. The AO had accepted the assessee's book profit including cash transactions, and no excess stock or investments were found during survey. Sales were reflected in GST returns. While the CIT(A) acknowledged the assessee provided corroborative evidence justifying cash deposits, it still confirmed 50% addition without proper basis. The ITAT held that once CIT(A) accepted sales of Rs.13.75 crore with legitimate cash transactions deposited in banks, there was no justification for sustaining 50% addition without providing reasons. Regarding sundry creditors difference, the matter was remanded to AO for verification with the liquidator before making any addition, as no verification was conducted initially. en-us Mon, 07 Jul 2025 00:00:00 +0530 Thu, 17 Jul 2025 08:19:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774978 The ITAT Patna allowed the assessee's appeal regarding unexplained cash deposits during demonetization. The AO had accepted the assessee's book profit including cash transactions, and no excess stock or investments were found during survey. Sales were reflected in GST returns. While the CIT(A) acknowledged the assessee provided corroborative evidence justifying cash deposits, it still confirmed 50% addition without proper basis. The ITAT held that once CIT(A) accepted sales of Rs.13.75 crore with legitimate cash transactions deposited in banks, there was no justification for sustaining 50% addition without providing reasons. Regarding sundry creditors difference, the matter was remanded to AO for verification with the liquidator before making any addition, as no verification was conducted initially. Case-Laws Income Tax Mon, 07 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774978