Cash Deposits from Business Debtors Explained-Addition u/s 68 Deleted by ITAT Ahmedabad

Kumarpal Chandanmal Shah Vs ITO (ITAT Ahmedabad) Assessee, a trader operating from Revdi Bazar, Ahmedabad, filed an appeal against the order of CIT(A)/NFAC . In assessment proceedings, AO had added ₹ 25,66,000 u/s 68 treating the amount of cash deposits in the bank as unexplained credits, and also rejected books of account u/s 145(3) on the presumption that the source of cash was not properly explained. Before the lower authorities, Assessee furnished a detailed reconciliation explaining that the deposits represented collections from regular trade debtors against sales made in earlier years....