2025 (7) TMI 1737

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....ct') dated 29.09.2022 by the Assessing Officer, DCIT, Central Circle-II, Noida (hereinafter referred to as 'ld. AO'). 2. The only effective issue to be decided in this appeal is as to whether the Learned CITA was justified in making a fresh addition on account of net profit at the rate of 8% of turnover in the facts and circumstances of the instant case. 3. None appeared on behalf of the assessee despite issuance of notice on several occasions. Hence we proceed to dispose of this appeal on hearing the Learned DR and based on materials available on record. 4. The assessee is engaged in the business of selling farm fresh milk. A search and seizure operation under section 132 of the Act was conducted on 27-11-2020 on the premises of M/s. Sh....

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.... 6. The assessee received loan of Rs. 90,40,265/- from Shri Chandra Pal. In this regard, the assessee was asked to furnish the confirmation, ITR and bank statement of the lender. On perusal of the lender account, it was found that the assessee has received cash of Rs. 5,00,000/- on 10-10-2020 and Rs 20,00,000/- on 22-1-2021, which was sought to be treated by the Learned AO as violation of provisions of section 269SS of the Act for which proposal for initiation of penalty proceedings under section 271D of the Act was sought to be mooted. The assessment was completed by merely making the addition on account of incremental sundry creditors of Rs. 19,91,511/- as stated supra. 7. Before the Learned CITA, the assessee furnished the ledger accou....

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....se of CIT vs Pancham Dass Jain reported in 205 CTR 444 (All). 9. The Learned CITA in Para 6.6 of his order observed that the onus of proving the genuineness of purchases is on the assessee and since the same was not done by the assessee, the addition of incremental creditors had been rightly made by the Learned AO. Having observed that, the Learned CITA proceeded to reject the books of accounts of the assessee and the resultant book results under section 145(3) of the Act and proceeded to estimate the net profit at the rate of 8% of turnover. Accordingly, he proposed an addition of Rs. 12,32,872/-. After adjusting the returned loss of Rs. 1,77,869/-, the net profit addition was made by the Learned CITA at Rs. 14,10,741/- (12,32,872 + 1,77,....