Demonetisation Cash Deposits from Recorded Sales Cannot Be Treated as Unexplained

Anand Anand Choudhury Vs ACIT (ITAT Ranchi) Recorded Cash Sales Can’t Be Branded Unexplained -Demonetisation Deposits Backed by VAT Sale Assessee, proprietor of M/s Anand Hardware & Tools, filed return declaring income of ₹45.26 lakh. His case was selected for scrutiny through CASS. During assessment, AO questioned heavy cash deposits of ₹1.92 crore during the demonetisation period & made an addition of ₹1.67 crore u/s 68, treating it as unexplained cash credit, despite Assessee’s explanation that deposits arose from cash sales in October 2016 (Diwali season clearance with in...