https://www.taxtmi.com/caselaws?id=765576 The ITAT Ahmedabad upheld the AO's addition under Section 69A for unaccounted sales based on incriminating evidence from search operations, including seized materials and third-party statements. The tribunal rejected the assessee's arguments about maintaining proper excise records, noting that absence of documentation is inherent in clandestine transactions. While confirming the existence of unaccounted sales, the ITAT agreed with CIT(A)'s restriction of the addition to 6% of total turnover, representing embedded profit rather than entire sales value. The appeal was partly allowed, establishing that only profit element from unaccounted turnover is taxable. en-us Fri, 31 Jan 2025 00:00:00 +0530 Tue, 04 Feb 2025 08:46:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765576 The ITAT Ahmedabad upheld the AO's addition under Section 69A for unaccounted sales based on incriminating evidence from search operations, including seized materials and third-party statements. The tribunal rejected the assessee's arguments about maintaining proper excise records, noting that absence of documentation is inherent in clandestine transactions. While confirming the existence of unaccounted sales, the ITAT agreed with CIT(A)'s restriction of the addition to 6% of total turnover, representing embedded profit rather than entire sales value. The appeal was partly allowed, establishing that only profit element from unaccounted turnover is taxable. Case-Laws Income Tax Fri, 31 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765576