Addition Sustained Due to Unexplained Cash Shortage but Deleted for Proven Advances

Amar Sparklers Factory Vs ITO (ITAT Chennai) The appeal before the Income Tax Appellate Tribunal (ITAT), Chennai, arose from the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, dated 26.05.2023 for Assessment Year 2017–18. The dispute related to additions made by the Assessing Officer under Section 69A of the Income Tax Act concerning cash deposits during the demonetization period. The assessee, engaged in the fireworks business, filed its return declaring an income of ₹6,59,610. The case was selected for scrutiny due to substantial cash deposits of ₹9...