S.68 Invocable Only If Taxpayer Maintain Books: ITAT deletes Addition as Returns Filed u/s 44AD

The Income Tax Appellate Tribunal (ITAT) has ruled that Section 68 of the Income Tax Act, which deals with unexplained cash credits, can only be invoked if the taxpayer maintains books of accounts. In this case, the taxpayer had filed returns under Section 44AD, which allows for presumptive taxation and does not require the maintenance of books. The ITAT deleted the addition made by the Assessing Officer, providing relief to the taxpayer. The article discusses the legal principles involved and the implications of this ruling for small businesses and taxpayers opting for presumptive taxation.