No addition u/s 68 could be sustained if sales were made out of stock-in-trade

ACIT Vs Chandra Surana (ITAT Jaipur) Conclusion:  If the cash sales and receipts were duly supported by relevant bills which were produced in the course of assessment proceedings, addition U/s 68 was unwarranted. Where cash sales transaction was recorded in regular books of accounts, sales were made out of stock-in-trade then no addition U/s 68 could be sustained. Held: AO made an addition of Rs.2,90,93,500/- in declared income by holding that said amount of cash deposited by the assessee in his bank account during the demonetization period was nothing but the undisclosed income of assessee w...