2024 (2) TMI 1658

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....g to the assessment year 2017-18. 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the addition made on account of cash deposits made during the demonetization period in the sum of Rs. 57,02,060/- in the facts and circumstances of the case. 3. We have heard the rival submissions and perused the materials available on record. The assessee is a proprietor of M/s Dee Pee Leather Store engaged in the business of trading of hides and skins, PU Coated fabric mainly and partly Adhesive / Elastics/ PVC Strips/ Soles for ladies footwear. The assessee had shown business income of Rs 13,42,171/- and house property income of Rs 5,33,400/- in the return of income and after reducing deductio....

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.... sales made by the assessee (which is already included in the aforesaid total sales of Rs 6,46,73,279/-) and available cash sales as per the cash book maintained by the assessee. The assessee furnished the break up of cash sales made during the year under consideration month wise with corresponding figures of immediately preceding year also before the ld. AO. It was submitted that to the extent of cash sales made by the assessee, there is corresponding reduction in stocks maintained by the assessee and that the sales are duly supported by sales invoices. The assessee further furnished the following documents before the ld. AO:- a) Brief note regarding cash sales during the period 27.10.2016 to 7.11.2016 along with letter from Jammu....

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....k m) Copy of following ledger accounts in the books of the assessee company :-  - S K Trading enclosed in Pages 125 to 126 of the Paper Book  - Deepali Enterprises enclosed in Pages 127 to 128 of the Paper Book  - Renu Footwear enclosed in Pages 131 to 132 of the Paper Book  - Topper International Group Co. Ltd enclosed in Page 133 of the Paper Book  - Haochauan Enterprises Co. Ltd enclosed in Page 134 of the Paper Book  - Haining Haixiang Shoe Material Co. Ltd enclosed in Pages 135 to 136 Of the Paper Book  - LishuHaihe International Enterprises Co. Ltd enclosed in Page 137 of The Paper Book 5. We find that the assessee was practic....

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.... and credit sales made by the assessee are duly subjected to VAT and assessee had duly suffered sales tax and had filed VAT returns accordingly. There has been no revision in VAT returns as erroneously mentioned by the ld. AO, which fact is evident from the VAT returns enclosed in the Paper Book. Item wise stock statement had been duly furnished by the assessee for the whole financial year 2016-17 which is enclosed in Pages 103 to 106 of the Paper Book and hence the observation made by the ld AO in this regard that the same was not furnished is factually incorrect. The purchases made by the assessee in order to keep sufficient stock of goods in hand is not doubted by the revenue. The goods purchased had been duly reflected as 'goods inward'....