Deposit of cash sales in bank cannot be treated as deposit out of undisclosed income

ACIT Vs Ramlal Jewellers Private Limited (ITAT Mumbai) ITAT Mumbai held that cash sales accepted and then deposit of said cash in bank account cannot be treated as deposits made out of any undisclosed income. Accordingly, addition under section 68 unsustainable. Facts- Assessee Company is engaged in jewellery business, selling jewellery items to its retail customers. The case was selected for scrutiny for cash deposits in bank. Based on inquiry, AO held that amount of Rs. 2,57,59,680/- is liable to be added u/s 68 due to unusual jump in cash sales immediately before the demonetization period. ...