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2023 (7) TMI 494 - AT - Income TaxAddition u/s 68 - unexplained cash deposits made into its bank accounts during demonetization period - CIT-A deleted the addition - HELD THAT:- AO did not point out any defects in the books of account, no discrepancies were found in the stocks, sales and purchases. AO’s conclusion is that there are huge deposits in the bank account during demonetization period and the assessee could not explain such deposits. The assessee has amply demonstrated with evidences that the cash sales and the cash deposits during FYs 2015-16 and 2016-17 were almost same and there is only a minimal increase in cash deposits during the FY 2016- 17 relevant to the AY 2017-18. CIT(A) has passed a well reasoned order considering all the submissions of the assessee and the averments of the AO. As decided in M/S HIRAPANNA JEWELLERS AND (VICE-VERSA) [2021 (5) TMI 447 - ITAT VISAKHAPATNAM] through the trading account and find that there was sufficient stock to effect the sales and we do not find any defect in the stock as well as the sales. Since, the assessee has already admitted the sales as revenue receipt, there is no case for making the addition u/s 68 or tax the same u/s 115BBE again. Thus we hold that the AO has made addition u/s 68 erroneously. The ground raised by the Revenue is rejected.
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