For the A.Y. 2017-18, the Assessing Officer made addition u/s. 68 read with section 115BBE of the Act of the large cash deposit of demonetised currency made by the assessee, treating it as his undisclosed income.

Tribunal held that it was apparent from the summary of the assessee’s cash book that the cash balance was generated from cash sales and such sales were part of the total sales credited in the trading account, the income wherefrom had already been offered by the assessee by reducing the cost of sales from the sales. The Assessing Officer had not pointed out any defect in the cash books and other books of account. The sales were duly supported by the sale bills and invoices and duly verifiable from the books of account including the stock register. Further, the availability of stocks in hand showed that the sales made by the assessee were genuine and duly recorded in the books of account. Moreover, the cash sales conformed to the assessee’s own previous history and trend, indicating an increase over the previous year of 14.89 per cent., which was quite reasonable.  Additions rightly deleted by the CIT(A).(AY. 2017-18)