Mere Suspicion Not Enough: ITAT quashed ₹9.37 crore addition for Cash Jewellery Sales

Arvindbhai Jewellers Pvt. Ltd. Vs ITO (ITAT Ahmedabad) AO Smelled Something Fishy, ITAT Found Only Jewellery- 9.37 Crore Deposits-Tribunal Says ‘Business, Not Black Money Assessee, a gold jewellery trader, deposited ₹9.37 crore in cash during the demonetisation period (9 Nov – 30 Dec 2016). AO found that ₹9.78 crore of cash sales (85% of total yearly cash sales) were shown only in October 2016, compared to ₹48 lakh in October 2015, with most invoices below ₹2 lakh to avoid PAN requirement. Books were audited, but AO felt sales were “fabricated” to launder cash. Books were rejec...