2026 (3) TMI 944

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....o the Assessment Year 2018-19. The assessee has filed Cross Objection No.75/Ahd/2025 against the Revenue's appeal. 2. The Revenue has raised the following grounds of appeal: (a) The Ld.CIT(A) has erred in law and on facts by partly declaring the AO's addition of Rs. 4,00,39.425/- u/s. 68, reducing it to Rs. 22,96,800/- without appreciating the facts that the assessee failed to prove the identity, creditworthiness, and genuineness of unsecured loans, as no complete documentary evidence like lenders bank statements or confirmation was furnished during the course of assessment proceedings. Further, the Ld.CIT(A) erred in law and on facts by violating Rule 46A of the IT Rules by admitting additional evidence ( confirmations, PANs, r....

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....h proper and sufficient evidence. Since there was no proper sufficient response from the assessee to the notices of hearing issued calling for information, the Assessing officer completed the assessment u/s. 143(3) r.w.s 144B of the Act by making total addition of Rs. 4,00,39,425/- as unexplained cash credits u/s. 68 and Rs. 7,87,63,080/- as income from business. 4. Aggrieved against the Assessment Order, the assessee filed appeal before the Ld. CIT(A), who partly allowed the appeal of the assessee by observing as follows: "...9. I have carefully considered the submissions made by the appellant. The appellant has contended that the appellant has submitted Transactions details, Ledger accounts and Profit and Loss statements from ....

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.... closing stock instead of at cost In this regard, it is pertinent here to note that the appellant is engaged in the business of trading in shares and options and futures. Unlike the other businesses of trading. the full details of income and expense in trading in shares are readily available in the trading statement. When the details are available, the AO should not straight away reject the books and estimate the income at the rate of 12% arbitrarily especially when the appellant has submitted the audited trading account. Accordingly, the estimation of 12% by the AO is not valid. Hence, the adjustment made by the AO is hereby deleted as unsustainable. 10. Conclusion: In view of the foregoing, the appeal is partly allowed......