Case Law Analysis
|Income Tax Appellate Tribunal
Section 68 IT Act | Audited Books & VAT Returns Suffice to Prove Cash Sales During Demonetization: ITAT Bangalore
ITAT Bangalore rules that cash deposits from demonetization-era sales, backed by audited books and VAT returns, cannot be taxed as unexplained income under Section 68, even if payments were made in Specified Bank Notes (SBNs). The ruling clarifies that RBI guidelines on SBNs do not override statutory provisions of the Income Tax Act, reinforcing the primacy of documented business receipts over procedural currency norms.