Case Law Analysis
|Income Tax Appellate Tribunal
Section 68 Income Tax Act | Cash Sales Backed by Audited Books & VAT Returns Cannot Be Treated as Unexplained Income : ITAT Delhi
The ITAT Delhi has ruled that cash deposits made during the demonetization period, when fully documented through audited financial books, VAT returns, and stock records, cannot be taxed as unexplained income under Section 68. This sets a critical precedent for small and medium retailers who rely on cash transactions, affirming that proper bookkeeping overrides mere suspicion of undisclosed income.