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2023 (3) TMI 1229 - AT - Income TaxAddition u/s 68 - deposit of cash in two bank accounts of the assessee, during demonetisation period and creditors amount related to unsecured loan - HELD THAT:- The assessee has placed the documents and the primary evidence related to stock report of inspection of stock by the Excise and Taxation department of Punjab. We find that the assessee has a sufficient stock to convert in sale. Accordingly, the source of cash was explained which are generated from the sale of goods. The ld. AO pointed out that the sales are made by cash. Counsel placed that the stock of assessee was never be disputed. The assessee already declared the cash as turnover & paid the tax accordingly. The stock and purchase was never be disputed by the revenue. As relying on Om Overseas [2008 (3) TMI 44 - HIGH COURT PUNJAB AND HARYANA] assessee’s books of account were rejected by the AO and the addition was made without pointing out any specific defect in the books of account, impugned addition was rightly deleted - thus addition made by the ld. AO is liable to be quashed. In verification of the loan creditors the assessee has filed the document related to identity, transaction, the entire transaction was made through bank account which was produced before the bench. We set aside the order of the ld. CIT(A). The addition amount related to loan creditors u/s 68 of the Act is liable to be quashed. Appeal of assessee allowed.
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