ITO Vs Appliances Forever (ITAT Delhi)
ITAT Delhi held that addition on account of unexplained money under section 69A of the Income Tax Act unjustified as revenue failed to prove that cash sales are fictitious/ bogus.
Facts- The assessee is an electrical goods trader. The return of the assessee was filed on 31.10.2017 declaring income of Rs.4,700/-. The case was scrutinized and the consequential assessment was completed at income of Rs.65,58,040/- u/s. 143(3) of the Income Tax Act, 1961. AO held the cash sales aggregating to Rs.65,53,340/- deposited in the bank during the course of demonetization period non-genuine and taxed it u/s. 69A r.w.s. 115BBE of the Act.
CIT(A) allowed the appeal of the assessee. Accordingly, being aggrieved, the present appeal is filed by the department.
Conclusion- Held that revenue has not placed any material on record to demonstrate that the details of cash sales shown by the respondent/assessee are fictitious/bogus. The purchases are entirely through imports. Further, the revenue has also failed to place any material on the record to demonstrate that the VAT returns of the relevant year have not been accepted by the VAT authority and the Custom authority has not accepted the imports/purchases. Hence, held that this case is squarely covered by this decision of Ramesh Kochar, accordingly, we are of the considered view that the addition of Rs.65,53,340/- under section 69A of the Act is uncalled for and the CIT(A) is justified in deleting the same. Consequentially, we decline to interfere with the order of the Ld. CIT(A).
