ACIT Vs Jaspal Singh Saluja (ITAT Delhi)
Revenue challenged deletion of Rs.25.24 crore added by AO u/s 68 on account of cash deposits treated as unexplained cash credits. Assessee, a retailer of electronic items & mobile phones, had branches at Delhi, Haridwar & Hyderabad for part of the year, & deposited total cash of Rs.31.62 crore which he explained as cash sales transferred to the Ghaziabad head office.
Before CIT(A)/NFAC, Assessee produced complete documentary evidence-cash books, ledgers, bank statements, month-wise branch-wise cash sales & purchases, VAT/GST returns, invoices, rent agreements, & importantly, third-party documentary evidence from Securitrans India Pvt. Ltd. & Prosegur SIS Cash Services Pvt. Ltd. showing actual cash transfer from branches to head office.
CIT(A) obtained a detailed Remand Report. AO examined all documents & categorically accepted that the cash deposits of Rs.25.24 crore were out of recorded sales & fully part of declared turnover of Rs.247.55 crore. He also accepted the genuineness of cash movements from branches.
Relying on the AO’s own findings in the Remand Report, CIT(A) deleted the addition. ITAT held that once AO himself accepted evidences & genuineness of cash sales in remand, the consequential cash deposits stand fully explained. There was no basis for sustaining addition u/s 68.
