TaxTMI 
TaxTMI 
2026 (1) TMI 416
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...., Jabalpur in ITA No. 21/JAB/2023 for assessment year 2018-19, whereby the order passed by the Commissioner of Income Tac (Appeals)-3 dated 29.11.2022 (Annexure A-4) has been affirmed. 2. The facts of the case, in short, are as under:- (a) A survey under section 133A of the Income Tax Act (hereinafter in short referred to as IT Act) was conducted at the premises of Shri Devendra Shobhawani, C/o Nitin Jewellers, Shalimar Market, Katni. The nature of the business was trading of imitation/artificial jewellery, cosmetics etc., under the name and style of M/s Nitin Jewellers. The police raid was conducted on 27.10.2018 at Saurabh Stationery proprietors' concern of Shri Shankar Lal Ahuja, in which his son Shri Nitin Ahuja, Rahul Ahuja a....
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....1,34,01,821/- along with interest and penalty to be assessed separately. (c) Being aggrieved by the order of assessment dated 31.03.2022, the appellant preferred Appeal No.CIT (A)-3/ Bhopal/IT-1245/2017-18 (Annexure A-4) to Commissioner of Income Tax (Appeals)-3, Bhopal. The learned Appellate Authority, after considering all material available on record and submissions raised by the appellant, found that there is an admission of undisclosed income for the year under consideration is Rs. 1,10,27,000/- as per LPI-2 (Whatsapp Chat) and Rs. 20,46,184/- as per LPI-1. Learned Appellate Authority has held that the contention of the appellant that Whatsapp Chat messages should be treated as dumb documents is hereby rejected as the LPI-2 and LPI-....
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....purchases of artificial jewellery by the appellant. (e) Regarding Rs. 20,53,984/-, the said figure was found on the basis of pages no.1 to 34 of LPI-1, where the appellant himself excluded entries in pages no.30 to 34; therefore, there was an admission of the amount of Rs. 20,46,184/- as unaccounted purchases for the year under consideration. The CIT has confirmed the transaction of Rs. 20,53,984/-. So far, the addition of Rs. 1,10,27,000/- by the Assessment Officer, the CIT found the transaction of Rs. 67,10,000/- only through Hawala and out of which amount of Rs. 20,130/- has been confirmed as unaccounted commission income, by partly allowing the appeal. Vide order dated 29.11.2022 (Annexure A-4), the Appellate Authority/CIT partly all....
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....ating the reply submitted by the appellant and the ground raised in the memo of appeal. Learned Tribunal was not justified in appreciating that the addition was based on the statement recorded during the survey, which has no evidentiary value. Learned CIT was not justified in enhancing the amount of Rs. 20,53,984/- to Rs. 23,68,399/- without giving any opportunity, which is a violation of section 251(2) of the IT Act. 5. Learned counsel for the appellant has proposed various substantial questions of law in paragraph 7 of the memo of appeal, which is reproduced as below:- "7.1 Whether on the facts and circumstance of case tribunal was justified in not appreciating the legal position that Assessing officer is bound to supply the r....
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.... appeal is only Rs. 9,44,138/- against the discloser of income by the appellant Rs. 3,20,837/-. We find that the learned CIT has duly examined the matter in detail. While hearing the appeal, the Assessment Officer was directed to conduct a re-assessment. As per the report submitted by the Assessment Officer, learned CIT has rightly found that there is an unexplained transaction of Rs. 20,53,984/- and there is an admission by the appellant, which has not been found wrong. Instead of approving the addition made by the Assessment Officer mechanically, the learned CIT has found that there should be an addition of Rs. 20,46,184/- and found it justified to apply the net profit ratio to the unrecorded sales in the year under consideration. The app....