https://www.taxtmi.com/caselaws?id=784785 The dominant issue was whether cash deposits in a bank account could be treated as unexplained under s. 69A (and allied s. 68) by reducing declared cash sales/turnover despite acceptance of the books. The ITAT held that once the AO accepted the audited books and did not dispute recorded cash sales, the AO could not selectively disregard trading results or reduce turnover without identifying defects in the cash book or stock records; cash deposits traceable to cash balance in the cash book could not be characterised as unexplained. Reliance was placed on HC precedent affirming this approach, and VAT-accepted pre-demonetisation turnover and sufficient recorded stock supported genuineness. The addition was set aside and the appeal was allowed. en-us Tue, 23 Dec 2025 00:00:00 +0530 Fri, 09 Jan 2026 15:34:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784785 The dominant issue was whether cash deposits in a bank account could be treated as unexplained under s. 69A (and allied s. 68) by reducing declared cash sales/turnover despite acceptance of the books. The ITAT held that once the AO accepted the audited books and did not dispute recorded cash sales, the AO could not selectively disregard trading results or reduce turnover without identifying defects in the cash book or stock records; cash deposits traceable to cash balance in the cash book could not be characterised as unexplained. Reliance was placed on HC precedent affirming this approach, and VAT-accepted pre-demonetisation turnover and sufficient recorded stock supported genuineness. The addition was set aside and the appeal was allowed. Case-Laws Income Tax Tue, 23 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784785