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TMI Blog2025 (1) TMI 1488X X X X Extracts X X X X X X X X Extracts X X X X ..... during October and November, 2016 could not be ruled out as the due date of filing of VAT Return for the third Quarter (October, November & December, 2016) was 31.01.2017. However, there is no reference of any corroborating material to buttress such inference in the assessment order. Revenue has not placed any material to demonstrate that the details of cash sales shown by the appellant/assessee are fictitious/bogus. The books of account have not been rejected by the AO. The AO has not-doubted/questioned either purchases or stock-in-trade. AO has taxed the income embedded in the doubted/questioned sales of Rs. 63,37,500/- @ 30% and again taxing the doubted/questioned sales of Rs. 63,37,500/- u/s 68 @ 60%. Such contradictions; prima-facie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer amounting to Rs. 63,37,500/- ignoring the documentary evidences filed by the appellant during the appellate proceedings. 6. That the CIT(A) wrongly upheld additions made by AO amounting to Rs. 63,37,500/- on account of cash deposit of sales in the bank account of the appellant during November, 2016 without any justification and against the principles of natural justice. 7. That the Ld. CIT(A) wrongly upheld the addition made by the learned assessing officer on surmises and conjectures without any justification. 8. That the ld. CIT(A) wrongly upheld the addition made by the learned assessing officer without rejecting audited books of accounts of the appellant. 9. That the Ld. CIT(A) learned Assessing Officer has wrongly upheld p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les & Granites earlier had also traded in the imported granite, for the first time, in the relevant year, which resulted rise in sales and new customers including those of other states. Hence, doubting the interstate sales by the AO was not based on the proper appreciations of facts. The AO had doubted sales of October and November, 2016 on the reasoning that the average par day sale just before the demonetization (from 1st October, 2016 to 8th November, 2016) was Rs. 1,84,512/- as against the average per day sale of Rs. 7,340/- for Financial Year 2015- 16 (from 01.04.2015 to 08.11.2015) Rs. 7,340/- and Rs. 8,070/- for Financial Year 2016-17 (from 01.04.2016 to 30.09.2016). It was contended that sales of the relevant year were bound to be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot justified. The Ld. AR further argued that the AO had taxed sales once as regular sales as per the Trading, Profit & Loss Account and again the same under section 68 of the Act, which tantamount to double taxation being contrary to the law and accounting principles. He questioned the AO's finding treating cash sales shown in the Trading, Profit & Loss Account as genuine by accepting book result & taxing the business income embedded in such sales and again taxing such sales as unexplained cash credits. 4.3 Before us, the Ld. AR submitted that the cash deposits were out of sales made by the appellant/assessee. He further submitted that the details of the deposits in bank account along with sales register and VAT returns were also filed bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable on the record. The issue before us is that whether sales taken place in October and November, 2016 are non-genuine and taxability of such sales under section 68 of the Act is justified. The AO doubted such sales because the average cash sales were highly abnormal than the average sales during the corresponding period of preceding years and backdating of sales during October and November, 2016 could not be ruled out as the due date of filing of VAT Return for the third Quarter (October, November & December, 2016) was 31.01.2017. However, there is no reference of any corroborating material to buttress such inference in the assessment order. Before us, the Revenue has not placed any material to demonstrate that the details of cash sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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