Case Law Analysis
|Income Tax Appellate Tribunal
Section 145(3) IT Act | Statistical Deviations Alone Cannot Justify Rejection of Audited Books : ITAT Jaipur
The ITAT Jaipur deleted a Rs. 40.82 lakh addition for unexplained cash deposits, ruling that mere deviations in cash sales or bank deposits-even amid demonetization-are insufficient to reject duly audited books of accounts. This reinforces that tax authorities must identify specific, material defects in accounting records, not rely on speculative patterns, protecting compliant businesses from arbitrary assessments.