https://www.taxtmi.com/caselaws?id=797069 Cash deposits during demonetisation attributed to recorded cash sales cannot be treated as unexplained cash credits merely because trading patterns departed from prior periods. The addition requires evidence that the sales explanation is unacceptable, including absent stock, unsupported purchases, or material defects in trading results. Audited books, stock records, purchase and inventory details, and VAT returns supporting the availability and sale of goods substantiate the deposits where no adverse third-party verification or discrepancies are established. Suspicion regarding related-party transactions or possible VAT-sales manipulation cannot replace proof. Taxing cash receipts already recorded as sales, without disproving those sales, would amount to double taxation. en-us Mon, 16 Feb 2026 00:00:00 +0530 Mon, 17 Aug 2026 08:38:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797069 Cash deposits during demonetisation attributed to recorded cash sales cannot be treated as unexplained cash credits merely because trading patterns departed from prior periods. The addition requires evidence that the sales explanation is unacceptable, including absent stock, unsupported purchases, or material defects in trading results. Audited books, stock records, purchase and inventory details, and VAT returns supporting the availability and sale of goods substantiate the deposits where no adverse third-party verification or discrepancies are established. Suspicion regarding related-party transactions or possible VAT-sales manipulation cannot replace proof. Taxing cash receipts already recorded as sales, without disproving those sales, would amount to double taxation. Case-Laws Income Tax Mon, 16 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797069