Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 912 - ITAT KOLKATACash sales during the demonetization period - unexplained cash credit u/s 68 - non-verification of sales during demonetization period as in most of the cases addresses are insufficient and the sales could not be verified - HELD THAT:- It is an admitted fact that there is an increase in cash deposit in the bank account of the assessee but this sudden spike in the cash deposit is attributable to two reasons. Firstly the recovery from the debtors and some special offers by the assessee to clear its stock by making cash sales. There is a sudden is increase in transactions during the demonetization. But then announcement of such a scheme is also not a regular feature and once such scheme is announced there has to be counter effects to such schemes and business concerns have to arrange their affairs accordingly. For instance normally the period of receiving outstanding amount from debtors is 2 to 3 months but when such scheme is announced each person tries to get free from the liabilities and available cash in hand. There is a chain reaction when such scheme is announced and there has to be an increase in the cash transactions of a business entity. On going through the sample purchase and sale bills, VAT audit reports, month -wise cash deposit and banks month wise cash receipt during the year, we do not find any reason to doubt the genuineness of the cash sale transactions made during the demonetisation period. Since all the cash transactions have duly been reflected in the gross sales during the year, purchases are not in dispute, net profit has been offered as per the past trend, no other defect has been pointed out by the AO in the books except the cash sales made during the demonetisation period, we thus do not find any reason to doubt the genuineness of the cash sale transactions - Decided in favour of assessee.
|