ITAT Pune Upholds Additions on Demonetisation Cash & GP Estimation – Liquor Trader’s Appeal Dismissed

Krish Wines Vs ACIT (ITAT Pune)

ITAT Pune Upholds Additions on Demonetisation Cash & GP Rate — Liquor Trader’s Appeal Dismissed

Assessee, a firm engaged in retail sale of country liquor & IMFL, filed return declaring ₹13.40 lakh income. During scrutiny, AO noted cash deposits of ₹1.68 crore during demonetisation, including ₹33.66 lakh in specified bank notes. Since available cash balance on 08-Nov-2016 was only ₹18.65 lakh, AO treated ₹15,00,283 as unexplained u/s 69A.

AO also observed low gross profit (GP) at 5.95% on turnover of ₹13.38 crore.

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