https://www.taxtmi.com/caselaws?id=466463 Assessee recorded cash sales of gold and silver during the demonetisation period in audited books, VAT returns and financial statements; VAT authority accepted those sales. Tribunal held that an assessing officer must formally reject books under the prescribed rejection procedure before disbelieving recorded transactions, and failure to do so makes direct addition on unexplained credits unsustainable. Because the cash sales arose from core business activities and were reflected in audited records and inventory, the amounts must be taxed as business income at normal rates rather than under the penal treatment for unexplained credits, and the assessing officer was directed to recompute tax accordingly. en-us Thu, 27 Feb 2025 00:00:00 +0530 Mon, 09 Feb 2026 11:21:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466463 Assessee recorded cash sales of gold and silver during the demonetisation period in audited books, VAT returns and financial statements; VAT authority accepted those sales. Tribunal held that an assessing officer must formally reject books under the prescribed rejection procedure before disbelieving recorded transactions, and failure to do so makes direct addition on unexplained credits unsustainable. Because the cash sales arose from core business activities and were reflected in audited records and inventory, the amounts must be taxed as business income at normal rates rather than under the penal treatment for unexplained credits, and the assessing officer was directed to recompute tax accordingly. Case-Laws Income Tax Thu, 27 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466463