ITAT Deletes Addition on Demonetization Cash Sales supported by books, invoices & stock registers

Nirankari Sons Jewellers Private Limited Vs ITO (ITAT Delhi) Summary: The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) ruled in favor of Nirankari Sons Jewellers Pvt. Ltd., deleting an addition of ₹1.33 crores made under Section 68 of the Income Tax Act. The case involved scrutiny of high cash sales recorded just before the November 2016 demonetization. The Assessing Officer had questioned the genuineness of cash deposits of ₹71.87 lakhs between 01.11.2016 and 08.11.2016, and flagged October 2016’s sales of ₹2.09 crores as disproportionately high when compared to the precedi...