Man Mohan Agarwal Vs DCIT (ITAT Delhi)
ITAT Delhi Partly Allows Jeweller’s Appeal: Bogus Sale Addition Upheld, Relief on Cash & Stock- Cross-Examination Not Allowed, But Tribunal Confirms ₹50 Lakh Bogus Sale Addition Against Jeweller
A search was carried out on the Assessee on 18.01.2017. He declared income of ₹17.75 lakh. AO, however, made additions aggregating more than ₹1.36 crore on account of bogus sales, unexplained cash, excess jewellery & silver stock, & lottery income. CIT(A) confirmed part of the additions.
Tribunal examined each item of dispute in detail. With respect to the sale of ₹50 lakh to M/s Shiva Trading Co., AO relied on the statement of Rahul Chaudhary, who admitted to being an entry operator during demonetisation. Tribunal noted that the buyer was admittedly bogus, there was no transport evidence, & the cash trail pointed to accommodation entries. Assessee’s plea of genuine sales was therefore rejected & the addition of ₹50 lakh was upheld.
Regarding the cash of ₹7.82 lakh found at the shop, the Assessee explained that it belonged to his son Mayur Agarwal (proprietor of J.S. Jewellers), supported by affidavit. Tribunal found the explanation reasonable & accepted it. Similarly, cash of ₹1.38 lakh found at residence was explained as belonging to family members, supported by affidavits, & was accordingly deleted.
