TaxTMI 
TaxTMI 
2025 (4) TMI 1560
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....s passed by CIT(A)-47, Mumbai for the quantum of assessment passed u/s. 143(3)/147 & 143(3) for the A.Y. 2019-20, 2020-21 and 2022-23. 2. In all the appeals, the common issue involved is that Ld. CIT(A) has erred in restricting the addition made by the ld. AO by applying G.P. Rate on unaccounted sales. 3. The brief facts in all the years are that a search was conducted on Ratnakala Group on 22/09/2021. During the search it was found that they were maintaining three software:- a) Diamond Software for accounted transactions b) Mirekal Software for unaccounted transactions c) DOS for Cash Transaction entries 4. During the search it was also revealed that Ratnakala Group is involved in cash sales / cash purch....
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....atnakala Exports Private Limited, the software which was found and seized by the Investigation Wing it was found that assessee had sold patala diamond in cash to Ratnakala Exports Private Limited and during the course of search and also by the various statements, it was found that they were actual cash sales, accordingly, he added the entire sales in the hands of the assessee for the assessment years. For instance, in A.Y.2019-20, he added the amount of Rs. 86,53,491/-; in A.Y.2020-21, he added the entire sales of Rs. 1,09,18,715/-; and in 2022-23 he added Rs. 1,74,90,081/-. 6. Before ld. CIT (A) the assessee made detailed submissions which has been incorporated in the impugned order wherein, it was stated that nothing was found from the....
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....sales, out of which the sales which were accounted and duly recorded in the books considered by the ld. CIT(A) and GP rate applied to sustain the additions are as under:- AY Alleged Sale by AO AO Accounted Sale considered by CIT(A) Unaccounted Sale considered by CIT(A) GP Rate applied on alleged Cash Sale Addition sustained by CIT(A) 2019-20 86,53,491 86,53,491 - 86,53,491 8.34% 17,21,701 2020-21 1,09,18,715 1,09,18,715 41,62,097 67,56,618 5.5% 3,74,992 2022-23 1,74,90,081 1,74,90,081 1,51,92,866 22,97,215 4.42% 1,01,537 8. Before us ld. Counsel submitted that first of all the reopening in the case of the assessee was based on borrowed satisfaction withou....
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....f patala diamond to Ratankala. First of all, it is now matter of record that out of these unaccounted sales which has been added by the ld. AO, substantial part was accounted in the books of the assessee which has been verified and finding of fact has been given by the ld. CIT (A). Thus, entire sales could not have been added as unaccounted sales. Even if it is admitted that there are certain unaccounted sales of diamonds, then there were also purchases of diamond which has been sold in cash to Ratnakala Group. In such a scenario, the entire sales could not have been added, because purchases have not been doubted at all by the ld. AO. Without purchases, sales cannot be affected. Another important fact here is that assessee's total turnover/....