2026 (3) TMI 780

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....43(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 27.03.2023 by the Assessing Officer, DCIT, Central Circle-32, New Delhi (hereinafter referred to as 'ld. AO'). Identical issues are involved in both these appeals hence, they are taken up together the disposed of by this common order for the sake of convenience. 2. With the consent of both the parties, the facts relevant for AY 2018-19 are taken up for adjudication and the decision rendered therein shall apply with equal force for AY 2019-20 except with variance in figures. 3. The only issues to be decided in both the appeals is as to whether the ld CIT(A) was justified in confirming the addition made on account of profit @35% of the sales in the facts and ....

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....personal assistant of Kuldeep Bishnoi) during the course of search operation carried out on 23.07.2019. This diary contained various transaction details and party details related to construction work being carried out at 135, Gold Links, New Delhi being the property owned by M/s. Seth Enterprises Pvt. Ltd at page 87 of said diary which is reproduced in page 3 of the assessment order. The ld AO noted that the assessee had received payment of Rs. 5,00,000/- on 16.07.2017 Rs. 3,26,270/- on 19.03.2018 and Rs. 3,39,320/- on 07.07.2018 totaling to Rs. 11,65,590/- . The ld AO linked this page with page 114 of the same diary wherein running (day wise) ledger was maintained. The said page is reproduced in page 4 of the assessment order. On perusal o....

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....business receipts which was not offered to tax. The ld AO noticed that the assessee had declared 29.61% of gross profit for AY 2020-21 i.e. the year of search. On the alleged business receipt in cash to the extent of Rs. 5 lakhs, the ld AO estimated the gross profit of 35% and made an addition of Rs. 1,75,000/- in the assessment as unexplained business income u/s 28 of the Act. This action of the ld AO was upheld by the ld CIT(A). 5. At the outset, we find that in page 87 of the diary, a sum of Rs. 5 lakhs was mentioned with the alphabet (C) which as per the statement of Shri Sukumar Poria denotes cheque transactions. The decoding of alphabet (C) to denote cheque and alphabet (D) to denote cash by Shri Sukumar Poria has been accepted by ....