https://www.taxtmi.com/caselaws?id=787414 The note addresses whether cash deposits recorded as sales during demonetization can be treated as unexplained cash credits and taxed at a special rate. It applies the principle that business receipts recorded in books, supported by purchases, quantitative stock records and sales registers, are not to be treated as unexplained credits unless transactions are shown to be sham; rejection of books is required to disregard accounts. Applying these standards, the impugned addition treating the deposits as unexplained credits and taxing them at a special rate was unsustainable and was set aside in favour of the taxpayer. en-us Fri, 23 Jan 2026 00:00:00 +0530 Thu, 05 Mar 2026 08:41:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787414 The note addresses whether cash deposits recorded as sales during demonetization can be treated as unexplained cash credits and taxed at a special rate. It applies the principle that business receipts recorded in books, supported by purchases, quantitative stock records and sales registers, are not to be treated as unexplained credits unless transactions are shown to be sham; rejection of books is required to disregard accounts. Applying these standards, the impugned addition treating the deposits as unexplained credits and taxing them at a special rate was unsustainable and was set aside in favour of the taxpayer. Case-Laws Income Tax Fri, 23 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787414