2026 (3) TMI 169

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....ter referred to as the "Act") for Assessment Year 2017-18. 2. The assessee has raised following grounds of appeal:- "Grounds of Appeal 1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of Assessing Officer in making addition of Rs. 35,25,000/- on account of alleged unexplained cash credit u/s. 68 of the IT Act, 1961. 2. On the facts and circumstances of the case as well as law on the subject, the learned Assessing Officer has erred in taxing the addition by taking the rate @77.25% by attracting Section 115BBE instead of taxing as per normal tax slab. The addition if any that maybe confirmed should be taxed as business income. ....

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....reconciled and the purchases were accepted and not disputed by the Assessing Officer. The Ld. AR also submitted that the cash sales constituted only about 0.15% of total turnover of more than Rs. 270 crores and no defect was pointed out in the books of account u/s 145 of the Act. It was further submitted that sales receipts credited in the books cannot be treated as unexplained cash credits u/s 68 and reliance was placed on various judicial precedents. 6. The Ld. DR, on the other hand, supported the orders of the lower authorities and submitted that the assessee failed to conclusively prove the genuineness of cash sales and therefore the addition was rightly made. 7. We have heard the rival contentions and perused the material availab....