Cash Sales Addition During Demonetization Deleted as Assumption-Based

JCIT Vs Pari Agencies Pvt Ltd (ITAT Delhi) The Delhi Income Tax Appellate Tribunal (ITAT) has dismissed a revenue appeal, upholding a lower court’s decision to delete a significant tax addition made on a company’s cash sales during the demonetization period. The tribunal found that the Assessing Officer (AO) had based the addition on unsubstantiated assumptions rather than on concrete evidence, a finding that supports the assessee’s position. This decision clarifies that tax additions cannot be made based on mere speculation, especially when books of accounts are not rejected. The ca...