Case Law Analysis
|Income Tax Appellate Tribunal
Section 69A IT Act | Audited Books and Cash Flow Statements Can Displace Conjecture on Unexplained Cash Deposits : ITAT Bangalore
The ITAT Bangalore ruled that unexplained cash deposits under Section 69A cannot be added if the assessee substantiates the source through audited financial records and verified cash flow patterns, rejecting the Assessing Officer’s speculative assumption. This sets a critical precedent for individuals and small businesses facing scrutiny over bank deposits, affirming that documentary evidence trumps mere disbelief.