https://www.taxtmi.com/caselaws?id=775086 The ITAT Ahmedabad ruled in favor of the assessee regarding additions under section 68 for unexplained cash deposits. The assessee, a cooperative society, claimed deposits originated from trading activities and KCC loan recoveries from members. The CIT(A) accepted the explanation based on audited financial statements, cash book, bank statements, sales records, KCC loan recovery lists, cooperative society registration certificate, and bank confirmation of KCC loans. The revenue contended that absence of member ledger accounts and opening cash substantiation rendered the explanation insufficient. The ITAT rejected this argument, holding that audited results eliminated need for opening balance justification, and the furnished documentation including bank confirmations, audited results showing loan distributions, cash book reflecting recoveries, and member lists adequately demonstrated the source of cash deposits from legitimate loan recoveries and trading activities. en-us Thu, 29 May 2025 00:00:00 +0530 Sat, 19 Jul 2025 08:25:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775086 The ITAT Ahmedabad ruled in favor of the assessee regarding additions under section 68 for unexplained cash deposits. The assessee, a cooperative society, claimed deposits originated from trading activities and KCC loan recoveries from members. The CIT(A) accepted the explanation based on audited financial statements, cash book, bank statements, sales records, KCC loan recovery lists, cooperative society registration certificate, and bank confirmation of KCC loans. The revenue contended that absence of member ledger accounts and opening cash substantiation rendered the explanation insufficient. The ITAT rejected this argument, holding that audited results eliminated need for opening balance justification, and the furnished documentation including bank confirmations, audited results showing loan distributions, cash book reflecting recoveries, and member lists adequately demonstrated the source of cash deposits from legitimate loan recoveries and trading activities. Case-Laws Income Tax Thu, 29 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775086