AdvertisementACIT Vs Kamlesh Gupta (ITAT Lucknow)Lucknow ITAT: Cash Sales During Demonetisation Cannot Be Taxed Again as Unexplained Money Merely Because Sales SpikedThe Lucknow ITAT dealt with an addition of ₹1.075 crore arising from cash deposits during the demonetisation period. The assessee, a wholesale and retail trader in FMCG products, had recorded the amounts as cash sales. The AO considered the sales during the relevant period abnormally high and treated ₹1.075 crore as unexplained. Importantly, the ITAT held that where cash sales are duly recorded in the books and already offered as revenue receipts, the same sale proceeds cannot again be treated as unexplained income under section 68. The AO was of the view that there was abnormal increase in cash sales but the assessee had failed to substantiate the claim of increase in sales and, therefore, the assessee’s claim of cash deposit against sales made was not acceptable.