Demonetisation Cash Sales Upheld Again – Chawla Jewellers Gets a Clean Chit

DCIT Vs Chawla Jewellers (ITAT Delhi) ITAT Delhi dismissed the Revenue’s appeal for AY 2017-18 in Chawla Jewellers, affirming CIT(A)’s deletion of a massive ₹15.35 crore addition u/s 68 made on alleged bogus cash sales during demonetisation. The AO treated cash deposits as unexplained, relying on employee statements, assumptions about shop size, billing capacity, and the theory that it was humanly impossible to generate such volume of sales on 08-11-2016. The Tribunal found this approach entirely conjectural. Key factual findings upheld by ITAT: – The assessee is a long-established jew...