Suwalka and Suwalka Properties and Builders Pvt. Ltd. Vs ACIT (ITAT Jaipur)
ITAT Jaipur held that provisions of 68 as such are not applicable on the sale transactions recorded in the books of accounts because the sale transaction are already part of the income which is already credited in statement of profit & loss account.
Facts- During the assessment proceedings, AO observed that for the year under assessment, the assessee company has deposited Rs. 2,79,00,000/- in its various bank accounts during demonetization period. Post considering the explanation, an amount of Rs.2,64,00,000/-(2,79,00,000/- – 15,00,000/-) was added to the total income of the assessee treated as unexplained money as per provision of section 69A of the IT Act, 1961 and tax is charged u/s 115BBE of the IT Act.
CIT(A) granted partial relief to the appellant. Being aggrieved, the present appeal is filed.
Conclusion- Held that the revenue cannot be accept the part of the sales as explained and part of the sales not explained on the same set of evidence. Therefore, the cash deposited in the demonetized currency added as income of the assessee by applying the provisions of section 68 of the Act while the provisions of 68 as such are not applicable on the sale transactions recorded in the books of accounts because the sale transaction are already part of the income which is already credited in statement of profit & loss account. Therefore, there is no occasion to consider the same as unexplained credit entry of the assessee by applying the provisions of section 68 of the Act.
