TaxTMI 
TaxTMI 
TaxTMI 
2025 (5) TMI 2092
X X X X Extracts X X X X
X X X X Extracts X X X X
....ions of Rs. 61,20,000/- made by the Ld. AO to the income of the assessee. 2. The Ld. CIT(A) has erred in law and facts while confirming the additions made u/s 68 of the Act. 3. The Ld. CIT(A) has erred in law and on facts wile upholding the additions merely on the basis of whims and surmises without rejecting books of accounts or without pointing out any infirmity in the books of accounts of the assessee. 4. The Ld. CIT(A) erred in law and facts while ignoring the books of accounts for explaining the source of cash deposited into the bank account for business transactions. 5. The assessee may please be allowed to add, alter, amend its ground of appeal at any time before or during the course of hearing of the appeal." 2. Facts of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the order passed by the Ld. AO by way of appeal, which was dismissed by the Ld. CIT(A) and confirmed the addition in question. 3. Aggrieving by the same, the assessee before us by preferring instant appeal for adjudication. 4. Heard rival contentions and perused the material available on record. The Ld. AR reiterated the ground of appeal expressing grievances that Ld. CIT(A) erroneously confirmed the addition of Rs. 61,20,000/- made by the AO to the income of the assessee u/s 68 of the Act, by upholding additions merely on the basis of whims and surmises and without rejecting the books of accounts or without pointing out any infirmity in the books of accounts of the assessee and ignoring the books of accounts for explaining the source of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... any defects in the audited books of accounts. In the absence of rejection of books of accounts and pointing out any defects in the books of accounts, the addition made by the Ld. AO u/s 68 of the Act, unsustainable. The relevant para no. 7 and 9 are reproduced as under: "7. Heard rival submissions, perused the orders of the authorities below. On reading of the assessment order, it is noticed that the Assessing Officer did not give any reason for rejecting the explanation of the assessee that the cash deposits were made out of sale proceeds. The Assessing Officer neither disputed the purchase, sales, stocks nor pointed out any defects in the audited books of accounts. In the absence of rejection of books of accounts and pointing out any d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Ld. AR relied upon the order passed by the Coordinate Bench of ITAT, Delhi, in the case of Bharat Agro Industries vs. DCIT, in ITA No.- 3934/Del/2023, the relevant para of this order is reproduced as under: "9. From the above, it is clear that the Ld. CIT(A) did not advert to submissions that no error was found in the stock of the assessee. Once the assessee has recorded the sales in its books and there is no adverse finding qua stock and purchases are made. In my considered view, invoking the provision of section 68 of the Act, would not be justified. It is not case of inflated purchases but AO treated cash sales being bogus without disturbing the books results. I therefore, hold that authorities below have committed error in making i....