2025 (8) TMI 1682

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....R, AM: This is an appeal preferred by the Revenue against the order of the Commissioner of Income-tax (Appeals)(hereinafter referred to as the "Ld. CIT(A)"] dated 08.12.2023 for the AY 2011-12. 02. The only issue raised by the Revenue is against the order of ld. CIT (A) holding the proceeding u/s 147 of the Income-tax Act, 1961 (the Act) as bad in law despite the ld. AO having concrete evide....

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.... of the Act, were invalidly initiated by observing and holding as under: - "In view of the material placed on record, it is therefore observed that the commodity profit to the tune of Rs. 1,61,92,645/- was shown in the Profit and Loss A/c filed by the assessee along with the return of income. The AO having himself accepted the said facts in the reasons recorded, there is no reason to say ....

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....e initiated the proceedings u/s 147 and the same is bad in law. Since the initiation of proceedings u/s 147 is held to be bad in law, the actions of the AO in the resultant assessment order u/s 147 in initiating penalty u/s 271(1)(c) and the addition of Rs. 50,00,000/-as unexplained investment automatically stand deleted. Even otherwise, it is worthwhile to mention that in his assessment order u/s....

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....fact while making the assessment the ld. AO did not make any addition with regard to commodity profit of Rs.1,61,92,645/- which was already disclosed by the assessee in the return filed. However, the ld AO made the addition in respect of other incomes which were not subject matter of the reason s recorded i.e. Rs.50 lacs paid by the assessee company to Pushkar Trading and Holding Pvt. Ltd. to whic....