Summary
- The ITAT Agra has deleted a Rs.33,00,923 addition made under Section 68 concerning cash deposits during the demonetisation period.
- The Tribunal found that the cash sales were duly recorded in the audited books of M/s R.P.J. Jewellers, with no defects identified by the Assessing Officer.
- It emphasized that Section 68 applies to unexplained cash credits and cannot be applied to legitimate sales already recorded in financial statements.
- This ruling reinforces that suspicion alone cannot justify tax additions when proper documentation exists, potentially impacting future assessments of similar cases.
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