The Hon’ble ITAT observed that none of the documents submitted by assessee have been denied by the lower authorities and that cash sales register and stock register are completely matching. It was also observed that the AO has failed to show that gross profit shown by the assessee is abnormally high or low and that cash sales have resulted in profit to the assessee which was offered to tax. The nature and source of cash sales have been explained by the assessee. The AO has not made any further inquiry with the customers of assessee by issue of summons u/s. 131 or inquiry u/s. 133(6). It was held that addition cannot be made in the hands of assessee merely for the reason that those customers have not transacted with the assessee post or pre demonetization. This could be the trigger point for investigation, but the AO, despite having complete address and PAN of customers did not make any such inquiry. (ITA No. 1407/Mum/2021 & ITA No.331/Mum/2022, dt.14.07.2023) (AY. 2017-18)
DCIT v. Mangal Bullion Pvt. Ltd (Mum.) (Trib.)
S. 68:Cash credits-Demonetisation-Jewellery/gold cash sales-Cash deposited during dem`onetisation-Assessee provided PAN and complete address of buyers, with stock register-Lack of inquiry by AO u/s. 131 or 133(6)-Held that addition ought to be deleted as nothing proved against assessee.[S. 131,133(6)]