2025 (5) TMI 965

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....Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 18.12.2019 by the Assessing Officer, ACIT, Circle-10(1), Delhi (hereinafter referred to as 'ld. AO'). 2. The only effective issue to be decided in this appeal is as to whether the ld CIT(A) was justified in confirming the addition made on account of cash deposits in the sum of Rs. 2,24,69,739/- in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. The assessee company is a domestic pharmaceutical company. The return of income for AY 2017-18 was filed by the assessee on 28.10.2017 declaring loss of Rs. 5,25,60,240/-. The ld AO observed that the assessee had made cash deposits during demonetiza....

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....the F.Y. 2016-17. M/20/233 5/12/2019 F 9. Monthly stock summary in quantity month wise & item wise showing opening, purchases, sales & closing for the F.Y. 2016-17 & 2015-16. M/20/235 07/12/2019 A (along with soft copy). 10. Stock quantative details for the complete month of November 2016 showing opening stock, purchases, sales and closing stock. M/20/235 07/12/2019 B (along with soft copy). 10. Stock quantative details for the complete month of November 2016 showing opening stock, purchases, sales and closing stock. M/20/235 07/12/2019 B (along with soft copy). 4. The assessee also submitted the complete details of purchase for the month of November 2016 totaling to Rs. 6.36 crores from parties above Rs. 10 lacs together....

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....efore the ld AO. The books of account were not rejected by the ld AO; the purchases were not doubted by the ld AO; the stock statement submitted were not doubted by the ld AO and assessee also gave details of parties to whom sales were made by it, which was also accepted by the ld AO. Despite all these facts, the ld AO concluded that cash sales exceeding the average cash sales for the month of November 2016 amounting to Rs. 2,24,69,739/- cannot be considered as genuine and added the same as unexplained cash credit u/s 68 read with Section 115BBE of the Act. While doing so, the ld AO did not even give reduction from the declared loss which includes the said sales of Rs. 2,24,69,739/- thereby resulting in double addition. This action was uphe....