ITAT Quashes Part of Income Tax Addition u/s 69A on Cash Deposits During Demonetization Based on Sales Evidence

The ITAT (Income Tax Appellate Tribunal) has quashed a part of an income tax addition under Section 69A on cash deposits made during demonetization. The tribunal's decision was based on the assessee providing sufficient sales evidence to substantiate the cash deposits. This ruling provides relief to taxpayers who faced scrutiny over cash deposits during that period by emphasizing the importance of corroborative evidence. The ITAT’s judgment underscores that additions under Section 69A for unexplained money cannot be made if the source is satisfactorily explained with supporting documentation.