Abhay Chordia Vs ACIT (ITAT Jaipur)
ITAT Jaipur held that addition towards unexplained cash deposit during demonetization under section 68 without rejection of books of accounts is unwarranted. Further, addition is also not warranted as genuineness of cash sale duly proved.
Facts- The present appeal has been preferred by the assessee. Assessee has mainly contested that the AO failed to discharge the burden of proof which squarely lay upon him for not treating the cash sales made by the assessee on 08/11/2016 of Rs. 4,35,91,454/- as genuine and consequentially treating the cash/SBNs deposited at Rs. 4,35,91,454/-in the bank accounts during the period of demonetization as undisclosed income of the assessee.
Conclusion- The entire showroom managed by Shri Ashwani Purohit and Aditya Purohit who are having deep knowledge of marketing and sales and both managerial are assisted by salesman and other staff members. It was also submitted that on 08.11.2016 total sale invoices issued during the day were from serial no.572 to 918 i.e. total 347. The total cash collection made upto the date 08.11.2016 was immediately deposited as soon as the bank opened after the close of 09.11.2016. In other words cash of Rs. 4,09,61,000/- and Rs. 38,25,000/- were deposited on 10.11.2016 and 11.11.2016 respectively in the bank account with HDFC Bank at Jodhpur. In support of it a certificate issued by the bank authorities was placed on record. The deposit of cash amount in the bank account immediately after the reopening of the bank after a close of one day on 09.11.2016 undoubtedly proves the genuineness of the cash sale made on 08.11.2016.
