TaxTMI 
TaxTMI 
2025 (6) TMI 1550
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.... Appeal of the Assessee as well as the Revenue are as under:- 2. The grounds of Appeal of the parties are as under:- ITA No. 7761/DEL/2018 (A.Y. 2014-15) (Assessee) "1. That on the Facts and circumstances of the case, the Assessment order passed by the Ld. CIT(A) is bad in law. 2. That Ld. CIT(A) has erred both in law and on the facts of the case in passing the assessment order pending the final order from excise department. 3. That Ld. CIT(A) has erred both in law and on the facts of the case in relying on documents recovered from premises of third party pertaining to other parties and using the same as corroborative evidence against the assessee. 4. That Ld. CIT(A) has erred both in law and on fac....
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....cts in deleting the addition of Rs. 15,00,000/-ignoring the fact that the assessee has received an amount of Rs. 15,00,000/- and the same has not been recorded in the books of account. 4. The CIT(A), Muzaffarnagar has erred in law and on facts in accepting the current year GP i.e. (-)5.38% of the assessee ignoring the fact that the GP rate of year under consideration was low. 5. The CIT(A), Muzaffarnagar has erred in law and on facts in deleting total additions of Rs. 3,56,648/- { Rs. 1,00,000/- (freight) Rs. 5,648/- (repairs) Rs. 1,50,000/- (wages) Rs. 1,00,000/- (other expenses) made on account of unverifiable expenses ignoring the facts that the books of accounts & supporting documents in respect of expenses claimed by ....
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....red the Appeal and as against sustaining the additions the Assessee preferred the Appeal. 5. The Ld. Counsel for the Assessee vehemently submitted that the sole basis for the addition made by the A.O. was the information shared by Central Excise Department consequent to search conducted upon on M/s Trikoot Iron and Steel Pvt. Ltd. Muzaffarnagar, however, A.O. without making any independent enquiry with either Trikoot or from Excise Department or any other person, made additions in the hands of the Assessee. The Ld. Counsel further submitted that the Hon'ble Custom, Excise and Service Tax Appellate Tribunal (CESTAT) vide order dated 09/09/2024 in Excise Appeal No. 55779/2023 (M/s Trikoot Iron and Steel Ltd. vs. Additional Directorate Gene....
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....ent is certain print out taken by the Central Excise Department from the hard disk and pen drive recovered from the premises of Trikoot in a search carried out by the Central Excise Department. However, the panchnama prepared at the premises of Trikoot does not bear any reference to recovery of hard disk and pen drive. Consequently, adverse opinion towards undisclosed sales made by the assessee to Trikoot flowing from such pen drive etc. is neither admissible as evidence nor it can be examined for this purpose as held in appellate order passed by Excise Tribunal. It is further a case of the assessee that consequent upon search in the case of Trikoot, a search was carried out at the premises of the assessee as well. However, Central Excise D....
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....eement with the views expressed by the Tribunal. Merely on suspicion based on information received from another authority, the assessing officer ought not to have made the additions without carrying out independent enquiry and without affording due opportunity to the respondent-assessee to controvert the statements made by the sellers before the other authority. Accordingly, we do not find any good ground to entertain this question for consideration as well. 20. Consequently, we find no merit in the appeal preferred by the Revenue. Appeal is dismissed." 13. Significantly, the AO has also not made any independent enquiry in the course of search to assert the additions. No independent material to corroborate the allegation o....