The two member bench of Delhi Income Tax Appellate Tribunal ( ITAT ) upheld that cash sales of business of trading of gold /silver jewelry during the demonetisation period were bonafide.
The Assessee, Delhi Spot Bullion Trading Co. Pvt.is in the business of trading Gold/silver jewelry, Gold/Silver bullion and precious stones. After filing the return of Income assessee case was selected for scrutiny .
During the scrutiny assessment, the Assessing Officer observed that the assessee had made cash deposits amounting to Rs. 2 ,43,37 ,500/- in its bank accounts between the period 9.11.2016 to 30.12.2016.
Aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) who deleted the addition.Accordingly the revenue filed appeal before the tribunal.
During the adjudication Anuj Jain, the counsel for assessee submitted that the appellants depositing all the cash sales in its regular bank accounts only . In some years , the cash deposits are more than the cash sales, which may be due to opening cash in hand and other cash receipts.
Further Cash sales are supported by the audited books of accounts , invoices , suffered from Value Added Tax ( VAT ) , VAT returns , Quantitative Stock tally and therefore , cannot be disregarded. Hence AO did not make any enquiry on the material submitted by the assessee .
Amit Katoch, Counsel for Revenue supported the order of lower authorities.
The tribunal observed that the no specific defects in the books of accounts o f the assessee have been found out and there was no negative stock on any of the dates which only goes to prove that the cash sales have been made against the available stock.
After reviewing the facts the ITAT bench of Astha Chandra (Judicial Member) and Dr. B. R. R. Kumar(Accountant Member) upheld that cash sales of business of trading of gold /silver jewelry during the demonetisation period were bonafide.
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