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2023 (8) TMI 1338 - ITAT DELHIAddition u/s 68 - bogus sales - A.O. found certain suspicions features in the books in terms of sudden spike in cash sales as compared to earlier and succeeding years - HELD THAT:- AO was not able to point out any defect in the books of account or audit financial statement of the assessee. The suspicion, however, strong it may be the same cannot be accepted as final truth without bringing on record some tangible evidence. Mere surmise cannot replace an evidence to prove the wrong doing if any by the assessee. Once, the A.O. accepts the books of accounts and the entries in the books of account are matched, there is no case for making the addition as bogus sales. As in the case of Lal Chand Bhagat Ambica Ram [1959 (5) TMI 12 - SUPREME COURT] held that the assessee maintained the books of accounts according to the mercantile system and there was sufficient cash balance in its cash books and the books of account of the assessee were not challenged by the AO. If the entries in the books of accounts are genuine and the balance in cash is matching with the books, it can be said that the assessee has explained the nature and source of such deposit. Assessee has not obtained full address details of the customers who have purchased jewellery below the amount of Rs. 2 lacs. -Taking full address and PAN of the customers who have purchased the jewellery below 2 lakhs is not mandatory under law and not taking the address and the PAN details during demonization rush and pressure on the sales of the jewellery which is otherwise not mandatory under law cannot be ground for drawing adverse inference against the sales made by the assessee specially when all the other para meters like purchase, stock register, sufficient of stock for sale made are accepted. There is no allegation on the assessee of non availability of stocks or fictitious purchases and A.O. has also not rejected the Assessee’s books of account u/s 145(3) we find no ground to interfere with the observations and conclusion of the CIT(A) and find no merit in the grounds of Appeal of the Revenue, accordingly, the Grounds of Appeal of the Revenue are dismissed.
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