ITAT upholds quashing of unexplained cash credit additions for lack of evidence and violation of natural justice under Income Tax law

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....The ITAT upheld the CIT(A)'s order quashing additions made by the AO treating 35% of cash deposits as unexplained cash credits and disallowances on debtors outstanding without concrete evidence or issuance of show cause notices, thereby violating natural justice. The AO's reliance on presumptions without specific findings or supporting evidence, including failure to justify the proportion of cash treated as unexplained credit, was found unsustainable. The assessee's sales figures were consistent with prior years, negating the AO's basis for additions. Consequently, the Tribunal dismissed the Revenue's appeal and affirmed deletion of the disputed additions, emphasizing adherence to evidentiary standards and procedural fairness in assessments.....