The assessee-company derived income from manufacture and trading of jewellery. The Assessing Officer reduced the sum of Rs. 12,17,48,500 deposited in the demonetisation currency out of the total sales of Rs. 2,09,09,94,399 declared by the assessee and treated the sum of Rs. 12,17,48,500 as unexplained cash credit of the assessee u/s. 68 of the Act and taxed it according to the provisions of section 115BBE of the Act.

The Commissioner (Appeals) deleted the addition of Rs. 12,17,48,500, upheld the rejection of books of account and the estimation of net profit at the rate of 2.59 per cent. as against 2.36 per cent. declared by the assessee.  

On appeal by the Assessee and Department, the Tribunal held that all the details required to prove the sales made by the assessee were provided in the assessment proceedings. As regards the receipt of cash from customers such amount standing in the books of account of the assessee would not attract section 68. There was no fault in the detailed reasoned finding in the order of the Commissioner (Appeals. Further, observed that the rejection of the books of account on the basis of insignificant defects in all respects, was not justified and the books of account deserved to be accepted. It was apparent from records that all the amounts realised from debtors and received as advance from customers during the period November 3, 2016 to November 8, 2016 were genuine and verifiable from the accounts and there was no cogent reason to treat them as not genuine.).Relied on  Harshila Chordia  Smt. v. ITO [2008 298 ITR 349 (Raj)(HC) (AY. 2017-18)