2025 (2) TMI 492

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....-18. The subject matter before us is the addition of Rs.40,02,000/- under Section 68 of the Act. 2. The assessee is an individual engaged in the business of trading in gold and other type of jewellery and diamonds filed its return of income on 01.11.2017 declaring total income of Rs.3,28,250/- The assessee maintained the books of accounts which are subjected to audit. The case of the assessee was selected for complete scrutiny and notice under Section 143(2) of the Act dated 07.09.2018 followed by notice under Section 142(1) dated 16.08.2019 were issued. During the period of demonetization the assessee deposited an amount of Rs.40,02,000/- in cash in old currency on 18.11.2016 in his account lying with Karnataka Bank Limited, Karol Bagh,....

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....n regular basis but depending on marriage timing and festive season, Karwa chowth, Dhanteras and mainly Diwali etc. In fact, during that period this high sale was made by the assessee due to Karwa Chauth and therefore, cannot said to be disputed as contended by the assessee. However, during other occasion like Akhay Tritiya and particularly period from December to February during wedding season when no such huge sale was found to have been made by the assessee, the AO disbelieved the same and finally the impugned addition was made by the Ld. AO which was further confirmed by the Ld. CIT(A), Hence, the instant appeal before us. 4. The case of the assessee is this that the addition has been made by the revenue authorities only on surmises ....

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....in consonance of above judgement of Hon'ble DELHI HIGH COURT:- ITAT Delhi in the case of DCIT CENTRAL CIRCLE 29, NEW DELHI. VERSUS SUBHASH CHAND GUPTA 2023 (5) TMI 1110 Dated.- May 25, 2023 wherein it was held that the sales cannot be added u/s 68 unless they are proved as bogus on the basis of some reliable evidences. Further reliance in this regard is being placed on the Judgment of ITAT VISAKHAPATNAM in the case of ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1 VISAKHAPATNAM VERSUS M/S HIRAPANNA JEWELLERS AND (VICE-VERSA), 2021 (5) TMI 447 Dated: - 12-5-2021 held as under:- cash receipts represent the sales which the assessee has rightly offered for taxation. We have gone through the trading account and....

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....ding are as under:- "When the assessee gives any reply or submission or any documents to the Assessing Officer, it is duty of the Assessing Officer to examine the same in the light of the available evidence. In the present case the Assessing Officer and the Id CIT(A) have concluded the findings on the basis of conjectures and surmises. The Assessing Officer has to establish the link between the evidence collected by him and the addition to be made. The entire case has to be dependent on the Rule of evidence, the assessee in this case explained the source of bank deposits are from cash sales. The Assessing Officer proceeded to disbelieve the explanation of the assessee on the presumption basis without bringing the corroborative mate....