Cash Deposit of ₹1.91 Cr Addition Quashed: ITAT Rules Sales Substantiated by Audited Books, VAT Returns, and Stock Records

The ITAT struck down an income tax addition of ₹191 crore that was based solely on large cash deposits. The Tribunal held that the assessee’s sales were convincingly substantiated by audited financial statements, VAT filings, and detailed stock records. These records demonstrated consistency and legitimacy of income, outweighing the cash deposit-based presumption. The ruling underscores the importance of substantial records for evidentiary support in tax assessments and guards against unreasonable assumptions in the absence of tangible proof. (Article summary)