Advance received against the sales cannot be treated as cash credit u/s. 68. As sale were shown in books of account. If the Assessee has explained the source of cash deposits as well as genuineness of the transaction , addition cannot be made as cash credit.

In the case of PCIT v. Montage Enterprises (P.) Ltd. [2018] 100 taxmann.com 99 (Delhi) (HC) (Pr. CIT v. Montage Enterprises (P.) Ltd. [2018] 259 Taxman 417 (SC) SLP filed by the department was dismissed )stating that, trade advances received by assessee were adjusted against sales made in subsequent years cannot be taxed under section 68 as cash credit.

In the case of CIT v. Puran Chand Mittal [2012] 347 ITR 565 (P & H)(HC) the Court held that Amount claimed to have been received by assessee as advance against sale of a commercial plot could not be treated as assessee’s undisclosed income when assessee had produced person in whose name amount was outstanding and said person admitted that he had given amount to assessee as an advance.

In the case of CIT v S.D. Investment & Trading Co. [2008] 306 ITR 31 (Bom)(HC) held that assessee had deposited cash and explanation given that it was advance against sale of air-conditioning units received from different parties, deleted addition holding that deposit was explained.

Further sales cannot be added as under section 68 of the Act. When the purchases are reflected in the regular books of account and stock register is maintained.

When number of sales invoices show source from where cash was received which was deposited in bank account of assessee and, turnover of assessee was also shows sales were done, then additions under section 68 on account of cash credit does not sustained.
NECX (P.) Ltd. v. ITO [2023] 198 ITD 406 (Hyd)(Trib.)

Provision of section 68 are not applicable to sundry creditors.
Sundry creditors cannot be treated as cash credit under section 68 when assessee submit copies of bank statements and confirmation for outstanding amount.

In ITO v. Darshan Lal (2020) 82 ITR 154 (Delhi)(Trib.) held that sales cannot be assesse as cash credits . Only gross profit can be estimated

Each case to be demonstrated on facts .

Advance received against the sales cannot be treated as cash credit u/s. 68. As sale were shown in books of account. If the Assessee has explained the source of cash deposits as well as genuineness of the transaction , addition cannot be made as cash credit.

In the case of PCIT v. Montage Enterprises (P.) Ltd. [2018] 100 taxmann.com 99 (Delhi) (HC) (Pr. CIT v. Montage Enterprises (P.) Ltd. [2018] 259 Taxman 417 (SC) SLP filed by the department was dismissed )stating that, trade advances received by assessee were adjusted against sales made in subsequent years cannot be taxed under section 68 as cash credit.

In the case of CIT v. Puran Chand Mittal [2012] 347 ITR 565 (P & H)(HC) the Court held that Amount claimed to have been received by assessee as advance against sale of a commercial plot could not be treated as assessee’s undisclosed income when assessee had produced person in whose name amount was outstanding and said person admitted that he had given amount to assessee as an advance.

In the case of CIT v S.D. Investment & Trading Co. [2008] 306 ITR 31 (Bom)(HC) held that assessee had deposited cash and explanation given that it was advance against sale of air-conditioning units received from different parties, deleted addition holding that deposit was explained.

Further sales cannot be added as under section 68 of the Act. When the purchases are reflected in the regular books of account and stock register is maintained.

When number of sales invoices show source from where cash was received which was deposited in bank account of assessee and, turnover of assessee was also shows sales were done, then additions under section 68 on account of cash credit does not sustained.
NECX (P.) Ltd. v. ITO [2023] 198 ITD 406 (Hyd)(Trib.)

Provision of section 68 are not applicable to sundry creditors.
Sundry creditors cannot be treated as cash credit under section 68 when assessee submit copies of bank statements and confirmation for outstanding amount.

In ITO v. Darshan Lal (2020) 82 ITR 154 (Delhi)(Trib.) held that sales cannot be assesse as cash credits . Only gross profit can be estimated

Each case to be demonstrated on facts .