Duly accounted cash sales during demonetization cannot be treated as unexplained cash credit

Micky Fireworks Vs ACIT (ITAT Chennai)

Introduction: The Income Tax Appellate Tribunal (ITAT) in Chennai delivered a verdict in the case of Micky Fireworks Vs ACIT, shedding light on the implications of Section 68, particularly concerning unexplained cash during the controversial demonetization period in India.

Unraveling the Context:

• Backdrop: Micky Fireworks appealed against the decision of the Commissioner of Income Tax (Appeals), NFAC, Delhi for the Assessment Year (AY) 2017-18, particularly the confirmation of addition of Rs.118.23 Lacs under Section 68 during the demonetization period.

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