[aaykarbhavan] Cash sales -no law which prohibits a trader or a manufacturer in making cash sales

ITAT DELHI - Income Tax

Kishore Jeram Bhai Khaniya, Prop. M/s Poonam Enterprises, MP-83 Versus Income Tax Officer

Confirmation of addition made u/s 68 of the Act - Search and seizure – Cash sales made – Held that:- There is no law which prohibits a trader or a manufacturer in making cash sales – Relying upon R.B.Jessaram Fatehchand (Sugar Deptt) VS. CIT BOMBAY HIGH COURT] - sales can be in cash and it is hardly necessary for the seller to bother about the name and address of the purchaser - so long as the availability of stock is there and there is nothing adverse against the cash memos issued by the assessee, such cash sales cannot be doubted - the volume of such cash sales at Rs. 22.06 is to be seen in the light of the assessee's total turnover of Rs. 10.29 crore - It is but natural that if a customer makes cash purchase and lifts the goods, there is no duty cast upon the seller to insist for the address of the purchaser – the assessee has himself offered the amount of cash sales as his income by duly including it in his total sales -once a particular amount is already offered for taxation, it cannot be again considered u/s 68 of the Act - thus, any addition cannot be made by treating cash sales as bogus – Decided in favour of Assessee

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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