2025 (9) TMI 234

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....ter referred to as 'the Act') by ITO, Ward-17(1), Delhi (hereinafter referred to as 'ld. AO'). 2. The only effective issue to be decided in this appeal is as to whether NFAC was justified in confirming the addition made by ld AO on account of cash deposits in the sum of Rs.48,07,751/- in the facts and circumstances of the instant case. 3. I have heard the rival submissions and perused the material available on record. The return of income for assessment year 2017-18 was filed by the assessee on 10.10.2017 declaring Nil income even though the assessee declared business income of Rs.22,76,339/-. The assessee had unabsorbed depreciation brought forward from AY 2014-15 and the same was set off to the extent of business income, which resul....

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.... assessee had indeed shown cash sales and is part of the total turnover disclosed by it in the return of income and in the audited profit and loss account. The following points are undisputed and indisputable: - a. The assessee had shown cash sales for month of October 2016 from 01.11.2016 to 08.11.2016 and the same is part of total sales disclosed by the assessee in the sum of Rs.72.33 crores in the profit and loss account. b The purchase made by the assessee has not been doubted by the revenue. c. The total sales made by the assessee (both cash as well as credit sales) has not been doubted by the revenue. d. The assessee had sufficient stocks to effect the said cash sales and generate cash as an indepen....