https://www.taxtmi.com/caselaws?id=797598 Cash deposits during demonetisation, where linked to cash sales already recorded in business results, should not be treated as unexplained cash credit when purchases, stock-in-trade and sales remain undisputed. In a trading business, accepted purchases reasonably support corresponding sales. Increased bank deposits may also reflect the inability to use demonetised currency for cash purchases or expenditure, requiring available cash to be deposited. As the profit embedded in those sales has already been offered to tax, assessing the sale proceeds again as unexplained income would result in double taxation. The addition was therefore deleted. en-us Wed, 19 Aug 2026 00:00:00 +0530 Tue, 25 Aug 2026 08:34:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797598 Cash deposits during demonetisation, where linked to cash sales already recorded in business results, should not be treated as unexplained cash credit when purchases, stock-in-trade and sales remain undisputed. In a trading business, accepted purchases reasonably support corresponding sales. Increased bank deposits may also reflect the inability to use demonetised currency for cash purchases or expenditure, requiring available cash to be deposited. As the profit embedded in those sales has already been offered to tax, assessing the sale proceeds again as unexplained income would result in double taxation. The addition was therefore deleted. Case-Laws Income Tax Wed, 19 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797598