Section 68 Additions Rejected as Loan Repayment and Cash Sales Explained

ITO Vs Shann Jewellers (ITAT Delhi) Loan Repayments Explained from Stock Sales and Fresh Borrowings; Demonetisation Cash Sales Accepted as Genuine The Assessing Officer made two major additions for AY 2017-18: (i) ₹2.15 crore treating repayment of unsecured loans as unexplained under section 68, and (ii) ₹1.74 crore treating part of demonetisation-period cash sales as unexplained cash deposits taxable under section 68 read with section 115BBE. On the first issue, the CIT(A) analysed comparative balance sheets and cash flows and found that the firm had generated funds by reducing its closin...