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TMI Blog2024 (4) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... the garb of sales, Once the purchases are genuine, the sales could not have been doubted. An abnormal increase in cash sales cannot alone be the ground to out rightly reject them. Case of AO is that no details of the names and address, PAN or identity of the buyers were furnished by the assessee in support of its claim - CIT(A) has opined that the limit of transaction beyond which PAN is mandatory is ₹2 lakhs. Hence the seller is not required to obtain PAN from purchaser till this limit. The assessee has not made any sales above ₹2 Lakhs hence merely on suspicion it cannot be inferred that the sale is bogus. Hence rejecting the cash sales bills on this count cannot be done. It is a true fact that the books of the assessee have been audited and no fault has been found. Assessee has not submitted purchase ledger, sales ledger, cash book for the year under consideration and for the previous year, even though called for during scrutiny proceedings - The above submissions are not found to be correct for the reason that in response to the notice issued u/s 142(1) of the Act dated 30.10.2019, the assessee has submitted complete details, as was required by the AO through his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als. In response to the above notices, the assessee has uploaded all the financials for the financial year 2016-17 and other details called for along with its supporting materials. The assessee had also submitted bank statements and cash book for the financial year 2016-17. On perusal of the details furnished by the assessee, the Assessing Officer has noted that the aggregate cash deposits in demonetized currencies of ₹500/- and ₹1,000/- by the assessee was at ₹1,53,84,000/-. The assessee has claimed that the cash balance available prior to demonetization period from cash sales was the source for the said SBN deposits. On perusal of the cash book, the Assessing Officer has noted that the total cash inflow for the period from 01.11.2016 to 08.11.2016 were claimed to have been received from cash sales of ₹1,51,45,358/- which is substantial percentage of the total cash sales during the year and no details of the names and address, PAN or identity of the buyers was furnished by the assessee in support of its claim. After analysing the turnover details, details of cash sales and cash deposits from 01.04.2016 to 08.11.2016 as well as for the period from 01.04.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has not submitted Purchase Ledger for verification, event though it was called for during the course of assessment proceedings. 5. Whether on the facts and the circumstances of the case and in law, the Ld. CIT (A) was right in not considering the fact that the assessee failed to submit the Sales Leger for the FY 2015-16 and FY 2016-17, even though it was called for during the course of assessment proceedings. 6. The case law relied on by the CIT (A) in the case of ACIT vs. Hirapanna Jewellers of ITAT Vishakapatnam Bench is relating to a survey case and hence not applicable to the assessee's case. In a survey case, all the materials, documents are available for verification. In the instant case, the assessee has not submitted Purchase Ledger, Sales Ledger, Cash Book for the year under consideration and for the previous year, even though called for during scrutiny proceedings. 7. For these and other grounds that may be urged at the time of hearing, the appellant prays that this Hon'ble ITAT may be pleased to set aside the order of the CIT (A) and allow the appeal. The ld. DR has submitted that the assessee has not submitted purchase ledger, sales ledger, cash book for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly on comparison basis. The Assessing Officer has not doubted the purchases made by the assessee anywhere. The audited books and the audit report submitted by the assessee shows that there was an increase in stock with purchase and decrease in stock by sales. Further the Assessing Officer has not found any discrepancy in monthly opening stock, purchases, sales and closing balance. Effectively, the Assessing Officer has not rejected the stock register and has accepted it and in fact, the Assessing Officer has not found any fault in the books as there was no mistake. However, once the audited books are accepted by the Assessing Officer, the book results have to be accepted. The Assessing Officer cannot disallow cash sales while at the same time accepting the purchases and the monthly stock. Purchases, sales and the stock are interlinked and inseparable. Every purchase increases the stock and every sale decreases the stock. To disbelieve the sales either the assessee should not have the sufficient stocks in their possession or there must be defects in the stock registers/stocks. Once there is no defect in the purchases and sales and the same are matching with inflow and the outflow of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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