ITAT Mumbai – Entire Demonetisation Cash Addition Deleted; Belated VAT Returns not Ground for Sec.68 Addition

P.V. Media Vision Pvt. Ltd Vs ACIT (ITAT Mumbai) The assessee company faced addition of ₹4.74 cr u/s 68 towards cash deposits during FY 2016-17 (including demonetisation period). The AO treated the whole cash deposit as unexplained alleging fabricated cash sales, doubtful debtor recoveries & abnormal cash balances. On appeal, CIT(A) accepted that cash deposits largely arose from regular business activities such as cash sales, debtor recoveries & earlier cash withdrawals, supported by audited books, VAT returns & historical data, and deleted ₹4.06 cr. However, CIT(A) sustained â...