R.S. Diamonds India P. Ltd. v. ACIT (ITAT Mumbai)

Court: Mumbai Tribunal
Head Notes:

S. 68-Cash deposited during demonetisation-addition made by AO.
Assessee, engaged in the business of trading in diamond deposited an amount of Rs. 45 lakhs in its bank account during the demonetisation period in FY 2016-17. The Assessee explained the source of the amount deposited as from cash in hand recorded in the books and advance received from customers. On the ground that the Assessee had not collected all details from the customers from whom advances were received, the AO made an addition of Rs. 45 lakhs under section 68 of the Act. It was explained that each sale made to the customer was less than Rs. 2 lakhs per transaction and hence it has not collected complete details of the customers.

Noting that the source of the deposit made was duly explained as from cash received from customers which were supported by sale bills and duly recorded in the books of accounts, no addition could have been made. It was held that when cash deposits have been made from the cash balance available in the books of account, there was no question of treating the said deposits as unexplained cash deposit as opined by the Assessing Officer and confirmed by the CIT (A). Hence, the addition was deleted. (I.T.A. No. 2017/Mum/2021, A.Y. 2017-18)
R.S. Diamonds India P. Ltd. v. ACIT (Mum.)(Trib.) www.itatonline.org
(Coram : Hon’ble Shri B.R. Baskaran, AM)

Law:
Section(s): 68
Counsel(s): Rahul Sarda, Advocate
Dowload Pdf File Click here to download the file in pdf format
Uploaded By JAGISH POOJARI
Date of upload: August 3, 2022

Leave a Reply

Your email address will not be published.

*