Cash Deposits Linked to Sales Cannot Be Taxed Again – Entire Additions Deleted; Assessee Appeal Allowed & Revenue Dismissed

K.M. Textiles Export Private Limited Vs ITO (ITAT Mumbai)

ITAT Mumbai allowed assessee’s appeal and dismissed Revenue’s cross appeal in reassessment proceedings u/s 147 r.w.s. 143(3), holding that additions on cash deposits and alleged bogus purchases were unsustainable. AO had added ₹4.60 crore treating entire year’s cash deposits as unexplained though demonetisation deposits were only about ₹16.69 lakh. Tribunal noted that regular books, cash book, cash flow statements and reconciliations established clear

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