Recorded Sales Cannot Be Taxed Again U/s 68; Additions Based Only on Third-Party Statement Deleted

DCIT (OSD) Vs Gulshan Polyols Limited (ITAT Delhi) The Assessing Officer, relying mainly on the survey statement of an alleged entry operator, treated the assessee’s recorded sales of ₹48.29 lakh as unexplained cash credits under section 68 and purchases/sales return of ₹5.30 lakh as unexplained expenditure. He ignored extensive documentary evidence produced by the assessee, including sale invoices on a “billed to – shipped to” basis, transporter certificates, vehicle and GR details, stock register showing quantitative reduction on each sale, and full receipt of sale proceeds throu...