TaxTMI 
TaxTMI 
2025 (4) TMI 1816
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....ee engaged in the business of trading of gold and diamond jewellery and all types of precious stones filed its return of income on 29.10.2017 declaring total income at Rs. 10,19,270/- for the year under consideration. 3. The case was, thereafter, selected for complete scrutiny under CASS. The notice under Section 143(2) dated 24.09.2018 followed by notice under Section 142(1) along with questionnaire were issued to the assessee. Further that the assessee was directed to provide source of cash deposit of Rs. 2,25,00,000/- in the HDFC Bank and Rs. 3,00,000/- in the Punjab national Bank. The assessee explained that this cash deposit was due to increase cash sales made by the assessee and such facts were supported by corroborative evidences by furnishing the cash book, ledger, sales and purchase register, bank books, stock register, VAT returns, etc. before the Ld. Assessing Officer. 4. However, rejecting the contentions made by the assessee, the Ld. AO inter alia made addition of Rs. 1,33,09,590/- treating the cash sales as unexplained cash credit under Section 68 of the Act and a further addition of Rs. 46,87,095/- treating the cash deposit out of the c....
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....ntaining invoice No. , date, party name, address of the parties, contact of purchasers, description of good such as quantity, rate, amount, labor, hallmarking charges, VAT and mode of receipt of payment were duly submitted as additional evidences in support of the genuineness of the cash transactions and the same were duly confronted to the Ld. AO during remand proceedings. In this regard he has drawn our attention to page Nos. 366 to 425 of the paper book Number II, the contents whereof were duly verified. However, the same was disregarded by the authorities below without pointing out any defect while making the addition. Such submissions made by the Ld. AR neither been able to be denied nor the veracity of those documents has been disputed by the Ld. DR. 9. It is the case of the assessee that cash sales supported by audited books of accounts, invoices suffered from VAT, VAT returns, stock tally cannot be disregarded, particularly, when no discrepancy was found in the stock register, purchase and sales. The purchases, sales and stock are interlinked and inseparable; every purchase increases the stock and every sale decreases the stock. Keeping in view this particular aspec....
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....chase, sales tax no., voucher no., quantity purchased, narration, amount, VAT, Labor charges and excise amount at page 300-307 of PBK1. v. Details of purchases made with name, address, PAN & TIN of vendors, opening balance, description of goods purchased, quantity purchased, amount with VAT, date of invoice, total amount paid and amount outstanding as on 31.03.2017 at page 42-44 of the PBKI. vi. Copy of ledger of the persons from whom purchases have been made at page 45-53 of the PBK1. vii. Detail of purchases amounting to Rs. 4.2 crores with R.N. Bullion Pvt. Ltd. along with date, invoice no., item description, weight and amount with VAT at page 277 of the PBK1. viii. Copy of Purchase invoices amounting to Rs. 4.2 crores with R.N. Bullion Pvt. Ltd. at page 87-107 of the PBK1. ix. Detail of labour charges from 01.04.2016 to 31.03.2017 at page 279-282 of the PBK. x. Month wise detail of sale & purchases for FY 2016-17, FY 2017-18 & FY 2018-19 at page 269 of PBK1. xi. Sale Register with date, mode of payment, name & address of buyer, voucher number, narration, quantity sale amount, labour Charges, VAT & Total Amount at pa....
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.... book is also annexed at pages 183-265 of the PBK1. g. Banks statement of HDFC bank & PNB bank are annexed at pages 308-341 of the PBK1. 17. Most importantly the Sale invoices containing invoice No. , date, party name, party address, contact of purchasers, description of good such as quantity, rate, amount, labor, hallmarking charges, VAT and mode of receipt of payment in respect of sales made from 01.11.2016 to 08.11.2016 are appearing at pages 366- 425 of the PBK2. 18. It is relevant to mention that the Ld. DR has not been able to raise any objection in regard to the above details annexed to the paper book filed by the assessee which was duly submitted before the First Appellate Authority and duly confronted to the Ld.AO during remand proceedings. These documents clearly establishes that the cash deposit was made out of cash sales duly recorded in the books of account which was further audited under Section 44AB of the Act. In that view of the matter without referring any defect in the evidences so produced by the assessee in support of claim, the sales cannot be disregarded as contended by the Ld. AR is found to be acceptable. We have considered the fact that....