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2023 (7) TMI 742 - AT - Income TaxUnexplained cash credit - Addition u/s 68 - failure of the assessee to satisfactorily explain the cash sales - HELD THAT:- We find that assessee has reasonably explained the nature and source of cash sales credited in his books of account. Allegation of the AO that those parties to whom assessee has sold gold and Jewellery in cash was neither the customer of the assessee prior nor post demonetization. Arguably this answer could have been obtained by the AO had he examined any of the customers whose permanent account no. and address are provided to him. The issue would have been different had AO made inquiry by issue of summons u/s 131 or inquiry u/s 133(6) which would not have been responded or satisfactory explanation was not available. Such is not the case before us. Identical issue has been dealt with by the coordinate bench in Heera panna Jewellers [2021 (5) TMI 447 - ITAT VISAKHAPATNAM] and M/S Mangal Jewels Pvt. Ltd [2022 (10) TMI 1187 - ITAT MUMBAI] - Therefore, this issue is clearly covered in favour of the assessee by these judgments also. It is not the case that bills of sales of Jewellery doesn’t contend the complete address of the parties. Giving the complete address in cash memo/cash sales above Rs. 50 mandatory requirement of GST ACT. In this case such facts do not exist. Further cash transfer from Surat to Mumbai has been recorded in both branches cash book. Addition cannot be made in the hands of assessee merely for the reason that those customers have not transacted with the assessee post or pre demonetization. This could be the trigger point for investigation, but LD AO , despite having complete address and PAN of customers did not make any such inquiry. We confirm the order of CIT(A) to the extent addition deleted by him and reverse the order of the CIT(A) to the extent, he confirmed the addition. Therefore we direct the ld AO to delete the addition. Decided in favour of assessee.
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