Summary
- The ITAT Rajkot has rejected a ā¹2,65,59,500 addition under Section 69A against Aditya Ornaments, stating the cash deposits during demonetization were adequately explained as genuine sales.
- The Tribunal found no defects in the audited books or supporting documents provided by the partnership firm, which included bank statements and VAT returns.
- It emphasized that taxing recorded sales again as unexplained income would lead to impermissible double taxation.
- This ruling reinforces the importance of proper documentation in tax assessments during periods of significant economic change.
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