The assessee, engaged in trading of gold and silver jewellery, had a sum of Rs. 2,05,75,291 deposited in the bank during the demonetisation period treated as unexplained cash credit under section 68 on the ground of abnormal increase in cash deposits and alleged manipulation of cash sales, which addition was affirmed by the CIT(A). On appeal, the Tribunal held that the addition was not sustainable since the stock existed on the date of sale with no backdating proved, the assessee maintained a complete audited stock tally with quantitative records certified by the tax auditor, there was no deviation in the GP ratio compared to the preceding year, all parties were identified with names, addresses and PAN, proper invoices were issued and VAT duly charged, paid and returned without post-demonetisation revision, and AO had accepted the entire sales and purchases as genuine; since the cash deposits represented recorded sales already offered for taxation and no evidence of bogus sales was brought on record, a receipt could not be treated simultaneously as sale proceeds and as unexplained cash credit, and the addition was accordingly deleted.(AY. 2017-18)