Cash Deposits from Gold Sales to Unverified Buyers Attract Section 68 Additions

Champalal S. Shah Vs ITO (ITAT Mumbai) Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) in Champalal S. Shah v. ITO ruled in favor of revenue authorities by confirming an addition of ₹49.17 crore under Section 68 of the Income Tax Act, 1961. The Tribunal held that the assessee, who ran a proprietary concern called Shankheshwar Bullion, failed to satisfactorily explain substantial cash deposits arising from alleged gold sales to undisclosed buyers and purchases from a dubious supplier. The assessee, based in Mumbai, started Shankheshwar Bullion in March 2005 by obtaining Gujarat VAT r...