Demonetisation Cash Sales: ITAT Rejects Full Section 68 Addition, Applies GP Estimation

JMK Jewels Pvt. Ltd. Vs ACIT (ITAT Delhi) Demonetisation Cash Sales Recast: ITAT Applies GP Estimation, Rejects Section 68 in Full but Denies Blanket Acceptance The Delhi Bench “G” of the ITAT, in JMK Jewels Pvt. Ltd. v. ACIT (AY 2017-18), dealt with cross appeals by the assessee and the Revenue arising from a massive addition on account of cash sales during the demonetisation period. The AO had treated entire cash sales of ₹8.50 crore (01.10.2016 to 08.11.2016) as unexplained cash credits under section 68, alleging abnormal spike in cash sales, lack of KYC of customers, revised VAT retu...