Section 69A not invocable when cash is sourced out of recorded sales: ITAT Chennai

Mahasakthi Mills Limited Vs ACIT (ITAT Chennai) ITAT Chennai held that provisions of section 69A of the Income Tax Act could not be invoked when cash is sourced out of recorded sales. Accordingly, appeal allowed and addition u/s. 69A is liable to be deleted. Facts- The assessee being resident corporate assessee is stated to be running a textile mill. It is manufacturing cotton / synthetic yarn and clothes. It transpired that the assessee deposited cash of Rs.800.05 Lacs during demonetization period. The assessee also made cash advances of Rs.1267.55 Lacs to its sister concerns viz. M/s Imperia...