Cash Sale transactions already credited in the P&L cannot be regarded as unexplained credit: ITAT Jaipur
Facts:
1. AO in the assessment proceedings noted that for the year under assessment, the taxpayer company has deposited Rs 2,79,00,000 in its distinct bank accounts at the time of the demonetization period.
2. After acknowledging the explanation an amount of Rs.2,64,00,000/-(2,79,00,000/- – 15,00,000/-) was added to the taxpayer’s total income treated as unexplained money under the provision of section 69A of the IT Act, 1961 and tax is assessed under section 115BBE of the IT Act.
3. Before the appellant, CIT(A) granted the partial relief.
ITAT Jaipur held as below:
1. The revenue could not accept the part of the sales as elaborated and part of the sales is not explained on the proof. As a result, the cash deposited from the demonetized currency was included as income for the assessee.
2. However, these provisions (Sec 68/69) do not apply to the sale transactions recorded in the financial records, as those transactions are already considered a part of the income reflected in the profit and loss statement.
3. Hence no reason is there to regard it as an unexplained credit
The copy of the order is as under:
