Inflated cash sales not commensurate with earlier year sales cannot be the basis of addition U/s 68
Mumbai ITAT in case of jeweller held that allegation of inflated cash sales and huge cash deposit not commensurate with earlier year and subsequent year during demonetisation cannot be the ground to make addition u/s 68 if sales are linked with the deposits and no defects are found with the stock register . Further there is no requirement under law to prove source of funds of customers.
The case will be highly relevant in all the cases of jewellers where high addition has been done for cash deposit during demonetisation and was forming the part of the sale consideration.
The copy of the order is as under: