TMI Blog2024 (1) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... Companies Act and under the Income tax Act. The books of account have been maintained in the regular course of business and cash deposits in the books of account are duly reflected in the books of account Sales made by the assessee and shown in the regular books of account have been accepted as such by VAT authorities while framing the VAT assessment. The assessee was having sufficient stock in hand for making the impugned sales during the demonetization period and it is not the case of the AO that the assessee has shown bogus purchases to show bogus sales to cover up cash deposited during the demonetization period. No reason to interfere with the factual findings of the ld. CIT(A) - Decided against revenue. - SHRI N.K. BILLAIYA, ACCOUNT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the months of October November 2016, the assessee has sold wood to various parties and sales were made in cash, which has been deposited during demonetization period. It was explained that the assessee has paid VAT on the sales made and reported the same in its books of account. 7. In support, the assessee filed copy of bills, Sale/VAT return, stock register and VAT assessment order. 8. The detailed reply of the assessee and documentary evidences were dismissed by the Assessing Officer solely on the observation that there was a substantial increase in the cash deposits during the demonetization period as compared to the pre-demonetization period. The Assessing Officer also dismissed the claim of sales and went on to make addition of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities. 14. We have given thoughtful consideration to the factual matrix discussed hereinabove. The undisputed fact is that there is not even a whisper of any defect, error or infirmity in the books of account maintained by the assessee which were audited both under the Companies Act and under the Income tax Act. The books of account have been maintained in the regular course of business and cash deposits in the books of account are duly reflected in the books of account 15. Sales made by the assessee and shown in the regular books of account have been accepted as such by VAT authorities while framing the VAT assessment. The assessee was having sufficient stock in hand for making the impugned sales during the demonetization period and it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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