Tribunal held that there was no defect in purchases and sales and same were matching with inflow and outflow of stock. Audit report under section 44AB and financial statements clearly showed reduction of stock position matching with sales which clearly showed that cash generated represented sales. Deletion of addition is held to be justified. (AY. 2017-18)
ACIT v. Hirapanna Jewellers (2021) 189 ITD 608 / 212 TTJ 117 / 202 DTR 337 ( 2022) 96 ITR 24 (Vishakha)(Trib.)
S. 68 : Cash credits-Cash deposit in bank-Survey-Jewellery business-Post-demonetisation-No defects in purchase and sales-Outgo of stock matching with stock-Addition is held to be not valid. [S. 44AB, 133A]