Demonetisation Cash Sales Accepted: No U/s 68 Addition Without Proof of Bogus Sales

Vinayaga Fireworks Vs DCIT (ITAT Chennai) In this case, the assessee, a fireworks manufacturer, faced addition of ₹2.79 crore u/s 68 for cash deposits made during the demonetisation period, which was confirmed by the CIT(A). The assessee contended that the deposits were genuine business receipts, being cash sales during peak festival season (Dasara & Deepavali), duly recorded in audited books of account. Detailed customer lists, PAN details (where available), cash book, and turnover comparisons were furnished. The ITAT observed that: The books of account were not rejected u/s 145(3), Th...