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‘When Cash is Sourced out of Recorded Debtors, S. 69A cannot be invoked’: ITAT deletes Addition of Rs. 21.5 Crores

Update / Judgement Date

27 Feb 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderIncome Tax

The ITAT has ruled that when cash is sourced out of recorded debtors, Section 69A cannot be invoked, deleting an addition of ₹1 crore. This decision clarifies the application of Section 69A in cash transactions. It ensures that taxpayers are not unfairly penalized for legitimate transactions. This ruling underscores the need for clear evidence in tax disputes. It emphasizes the importance of fair assessments. The ITAT's order protects the rights of taxpayers.