https://www.taxtmi.com/caselaws?id=782370 ITAT Chandigarh allowed the assessee's appeal and deleted the addition made under cash credits for deposits during the demonetization period. The Tribunal held that the AO had proceeded on mere assumptions without any evidence that the bank deposits represented unexplained income. The AO had not doubted the assessee's purchases, stock-in-trade, or closing stock, and the fact that cash was deposited only during demonetization supported the assessee's explanation that cash sales proceeds were compulsorily banked due to the scheme. ITAT also noted that cash sales constituted only about 4.57% of total turnover, a minor and reasonable proportion, and thus no adverse inference was justified. en-us Fri, 07 Nov 2025 00:00:00 +0530 Fri, 28 Nov 2025 08:24:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782370 ITAT Chandigarh allowed the assessee's appeal and deleted the addition made under cash credits for deposits during the demonetization period. The Tribunal held that the AO had proceeded on mere assumptions without any evidence that the bank deposits represented unexplained income. The AO had not doubted the assessee's purchases, stock-in-trade, or closing stock, and the fact that cash was deposited only during demonetization supported the assessee's explanation that cash sales proceeds were compulsorily banked due to the scheme. ITAT also noted that cash sales constituted only about 4.57% of total turnover, a minor and reasonable proportion, and thus no adverse inference was justified. Case-Laws Income Tax Fri, 07 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782370