2023 (5) TMI 371

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.... said Appeal preferred by the assessee and has reversed the judgment and order passed by the ITAT restoring the Assessment Order passed by the Assessing Officer upholding the additions of Rs. 17,15,00,000/- as unexplained expenditure under Section 69C of the Income Tax Act, 1961 (for short "the Act"), the Revenue has preferred the present appeal. 2. At the outset, it is required to be noted that, in the present case, considering the material on record, the Assessing Officer made additions of Rs. 17,15,00,000/- as unexplained expenditure under Section 69C of the Act taking into consideration the actual consumption of diamonds as 4,30,701.14 carats as mentioned in the audit report and after considering the consistent trend on yield which was....

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....tion and the yield in the respective years. It is submitted that, in the audit report, it was specifically mentioned that the consumption was 4,30,701.14 carats and on that basis the Assessing Officer proceeded further and considered that the difference between the declared carats and the carats mentioned in the audit report can be said to be de hors the books of accounts/unaccounted and therefore the Assessing Officer rightly made the additions as unexplained income under Section 69C of the Act taking into consideration the trend with respect to the consumption in the last few years. It is submitted that, as such, the affidavits of the typist and the Chartered Accountant were filed for the first time before the ITAT and, in fact, the Asses....

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.... in the last assessment years, the Assessing Officer treated the same as unexplained income and made the additions of Rs. 17,50,00,000/- under Section 69C.  The ITAT has concurred with the said findings. As observed hereinabove, solely relying upon the statements of the Typist and the Chartered Accountant, the High Court has reversed the findings of the Assessing Officer as well as the ITAT. The High Court has also not properly appreciated and considered the fact that the affidavits were filed for the first time before the ITAT. The High Court has also not at all considered the conduct on the part of the assessee, which came to be considered in detail by the ITAT in para 10 of the order passed by the ITAT. It was found that there has ....