L.K.S. Bullion (Import and Export) Pvt Ltd Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that addition towards unexplained cash credit under section 68 of the Income Tax Act unwarranted as the amount represents sales already declared and taxed. Thus, income already offered for taxation cannot be taxed again as unexplained cash credit.
Facts- The assessee-company is engaged in the business of trading in gold, jewellery, Bullion and manufacturing of lagadies. The assessee-company filed its return of income for A.Y. 2010-11 on 14-10-2010 declaring total income of Rs.19,75,190/- which was processed u/s. 143(1) of the Act. On the basis of information received from the DDIT(Inv), Unit-6(4), Mumbai the case was reopened by issuing notice u/s.148 of the Act, after recording the reasons for the same.
On verification of bank statement furnished by the assessee the AO found that there are two credit entries dated 10-10-2009 for Rs.1,11,79,000/- and dated 12-10-2009 for Rs.80,50,000/- totaling to Rs.1,92,29,000/-. A show-cause letter was issued to the assessee as to why the total credit amounting to Rs.1,92,29,000/- should not be treated as income. Post considering reply from the assessee, AO treated this amount of Rs. 1,92,29,000/- as unexplained cash credit and added to the total income of the assessee. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
