ITAT Deletes Section 68 Addition as Accepted Cash Sales Cannot Be Treated as Unexplained

ITO Vs Sunita Gold and Diamonds Pvt. Ltd. (ITAT Delhi) The Revenue appealed against the order of the National Faceless Appeal Centre (NFAC), which had deleted an addition of ₹3,72,69,265 made under Section 68 of the Income Tax Act for Assessment Year 2017-18. The dispute arose from cash deposits made by the assessee, a jewellery trader, during the demonetization period. The assessee had deposited ₹3,54,70,000 into its bank accounts between 9 November 2016 and 31 December 2016. It explained that the deposits originated from cash sales of ₹2,06,55,451 and cash advances of ₹1,29,19,190 re...