https://www.taxtmi.com/caselaws?id=775232 The ITAT Delhi dismissed the Revenue's appeal regarding additions under sections 68/69A for unexplained cash credits. The assessee showed manifold increase in cash sales compared to the previous year, prompting the AO to make additions despite accepting all submitted evidence. The Tribunal found that the AO accepted the assessee's opening stock, purchases, closing stock, and stock registers without rejecting the books of accounts or identifying any discrepancies. The AO made additions solely based on increased cash sales compared to the previous year. The CIT(A) noted the AO failed to prove sales were not genuine when opening stock and purchases were accepted. Courts have held that maintaining proper stock registers consistent with books of accounts, where cash sales derive from maintained stock, cannot constitute undisclosed credit. The addition was deemed unjustified without evidence of book rejection or stock discrepancies. en-us Fri, 18 Jul 2025 00:00:00 +0530 Mon, 21 Jul 2025 10:16:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775232 The ITAT Delhi dismissed the Revenue's appeal regarding additions under sections 68/69A for unexplained cash credits. The assessee showed manifold increase in cash sales compared to the previous year, prompting the AO to make additions despite accepting all submitted evidence. The Tribunal found that the AO accepted the assessee's opening stock, purchases, closing stock, and stock registers without rejecting the books of accounts or identifying any discrepancies. The AO made additions solely based on increased cash sales compared to the previous year. The CIT(A) noted the AO failed to prove sales were not genuine when opening stock and purchases were accepted. Courts have held that maintaining proper stock registers consistent with books of accounts, where cash sales derive from maintained stock, cannot constitute undisclosed credit. The addition was deemed unjustified without evidence of book rejection or stock discrepancies. Case-Laws Income Tax Fri, 18 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775232