Case Law Details
Chirag Nareshbhai Soni Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that rejection of books of accounts merely for not providing stock details in desired format and without bringing any corroborative material on record suggesting specific defect in the books of accounts is unjustified.
Facts- The assessee is an individual and engaged in the business of trading of gold and gold ornament through his proprietary concern. The assessee during the demonetization period i.e. 9th November 2016 to 31st December made cash deposit of Rs. 59.95 Lakh only in the bank account. The assessee during the assessment proceedings explained that the cash has been deposited out of sale proceeds which were duly recorded in the books of accounts which were duly audited by the independent auditor, supported by the bills and voucher, purchases and stock register, cash book, bank book etc.
However, AO after rejecting the books of account treated the cash deposit made during the demonetization period as unexplained cash credit u/s. 68 of the Act. The AO further estimated the GP after reducing the amount of cash deposit from turnover to Rs. 15,91,131/- as against the GP of Rs. 15,14756/- declared by the assessee. Thus, the AO made addition of Rs. 59,95,000/- u/s. 68 of the Act and Rs. 75,375/- on account estimation of GP to the total income of the assessee.
CIT(A) upheld the action of AO. Being aggrieved, the present appeal is filed.
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