2025 (1) TMI 1572

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....grounds of appeal raised by the Revenue read as under: "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) was justified in deleting the addition of Rs. 12,83,75,566/- made by the AO u/s 68 of the Income Tax Act after applying provisions of section 115BBE of the Income-tax Act, 1961, on account of unexplained cash credits without appreciating the facts brought on record by the assessing officer in the assessment order? 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) was justified in deleting the addition of Rs. 2,92,90,122/- made by the AO u/s 69B of the Income Tax Act, 1961, on account of undervaluation of closing stock (Freeze stock)....

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....sessing Officer also made addition of Rs. 12,83,75,566/- for unexplained cash credit under Section 68 of the Act. The Assessing Officer made addition on account of wrong method of valuation considering Section 69B amounting to Rs. 2,92,90,122/-. 4. Being aggrieved by the assessment the assessee filed appeal before Ld. CIT(A). The CIT (A) partly allowed the appeal of the assessee. 5. The Ld. D.R. submitted that the CIT (A) was not justified in deleting the addition of Rs. 12,83,75,566/- made by the Assessing Officer under Section 68 of the Act after applying of provision of Section 115BBe of the Income Act, 1961. On account of unexplained cash credit without appreciating the fact brought on record by the Assessing Office....

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....ee before sale and has not disputed quantum of closing stock. The entire sales have been made out of available stock with the assessee and sufficient stock was available with the assessee. There was not back dated purchase or purchases shown in bank accounts which was held as bogus by the Assessing Officer. The statement of partner also mentioned modus operandi of sales after the announcement of demonetization including packing of jewellery for less than 2 lakhs, number of employees and other staff who served the client. The Ld. A.R. further submitted that there was a free stock as mentioned by the D.R. is not justifiable and thus, the CIT (A) has rightly deleted the said addition. There was no infirmity in the findings of the CIT(A), hence....