https://www.taxtmi.com/caselaws?id=784214 Trade advances from customers for sale of gold jewellery were wrongly treated as unexplained cash credits u/s 68: the assessee proved receipt of advances (largely through banking channels), subsequent issuance of sales invoices within a reasonable time, and adjustment of advances against recorded sales; once characterised as trade advances, enquiry into customers' creditworthiness was legally inapposite. The additions were deleted. Refund of excess labour advance from a goldsmith was also a trade adjustment supported by books and bills; treating the cash refund as u/s 68 unexplained was contrary to trade practice and evidence, so the addition was deleted. Cash received against credit sales could not be added u/s 68 merely for non-collection of TCS u/s 206C(1D), which was inapplicable due to turnover below s.44AB threshold; the addition was deleted. Cash deposits during demonetisation were supported by cash book balance and sales bills; belated VAT returns were consistent with past filing pattern, so u/s 69A addition was deleted, rendering s.115BBE rate issue academic. en-us Wed, 03 Dec 2025 00:00:00 +0530 Mon, 23 Feb 2026 10:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784214 Trade advances from customers for sale of gold jewellery were wrongly treated as unexplained cash credits u/s 68: the assessee proved receipt of advances (largely through banking channels), subsequent issuance of sales invoices within a reasonable time, and adjustment of advances against recorded sales; once characterised as trade advances, enquiry into customers' creditworthiness was legally inapposite. The additions were deleted. Refund of excess labour advance from a goldsmith was also a trade adjustment supported by books and bills; treating the cash refund as u/s 68 unexplained was contrary to trade practice and evidence, so the addition was deleted. Cash received against credit sales could not be added u/s 68 merely for non-collection of TCS u/s 206C(1D), which was inapplicable due to turnover below s.44AB threshold; the addition was deleted. Cash deposits during demonetisation were supported by cash book balance and sales bills; belated VAT returns were consistent with past filing pattern, so u/s 69A addition was deleted, rendering s.115BBE rate issue academic. Case-Laws Income Tax Wed, 03 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784214