ITAT deletes 69 Addition as Cash Sales can’t take place before Commencement of Business

The ITAT has ruled to delete an addition of ₹69 lakh made by the Income Tax Department, which was based on cash sales claimed before the business officially commenced. The Tribunal found that cash sales cannot occur before the start of business operations. The ruling emphasizes that such additions are not permissible as the business was not operational during the relevant period. This decision underscores the importance of accurately documenting the commencement of business activities for tax purposes.