2025 (3) TMI 1503

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.... deposits in bank account during the demonetization period of Rs. 8,57,44,000/- as unexplained cash credit u/s, 68 of the Act and taxed the same u/s. 115BBE of the Act. 2. Brief facts of the case are that assessee filed his return of income on 30.10.2017 at declared income at Rs. 1,12,19,390/-. The case of the assessee was selected for complete scrutiny and the reason for selection of the case for scrutiny was that there was an abnormal increase in cash deposit during demonetization as compared to average rate of cash deposits during pre- demonetization. The AO noticed that the average cash sales till the month of September 2016 was only Rs. 5592375 as against the cash sales reported Rs. 4,75,57,726/- for the month of October 2016 which ....

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....assessee entered into huge amount of Cash sales transactions every year and the same has been considered as part of the total turnover. Assessing officer commented that the assessee did not submit supporting documents for the fact that the appellant had taken new premises at Yusuf Sarai New Delhi. In the absence of any conclusive proof of there being two shops during the financial year 2016 17 it is difficult to accept the contention of the assessee that increase in cash sales is due to the assessee having 2 shops. In respect of cash sales, the assessee could not satisfactorily explain the sudden hike during financial year 2016 17 as compared to financial year 2015 16. Thus, the response of the assessee is not satisfactory, and the assessee....

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....) Act, 2016. Ld. DR relied upon the orders of the authorities below. We find that Ld. CIT(A) has not disputed the sales made which were duly disclosed in VAT return and also in books of accounts maintained by the assessee audited and also under section 44AB of the Act, no adverse inference could be drawn in respect of the declared sales by the assessee. We further note that once the purchases declared in the books of accounts were duly accepted then no subjective assumption and presumption could be made a basis to assume, allege and conclude that sales made out of such purchases were unexplained cash credits taxable under section 68 of the Act. It is settled law that once the books of accounts, sales have been accepted, the same could not b....