AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 826
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....s have been enumerated at appropriate places. The appeal ITA No.1052/Chandi/2025 arises out of an order of learned Commissioner of Income Tax (Appeals)-3, Gurgaon [CIT(A)] dated 31-07-2025 in the matter of an assessment framed by Ld. AO u/s 143(3) r.w.s. 147 of the Act on 27-02-2025. The sole grievance of the assessee is confirmation of substantive addition of Rs. 47 Lacs. The assessee being resident firm is stated to be engaged in retail sale of country liquor and IMFL. One of the partners of this firm was Late Shri Rajesh Thakur who carried out wholesale trade of country liquor under his proprietorship concern M/s Rajput Wines. 1.2 During the course of hearing before us, Ld. AR argued only on the merits of quantum addition and stated that the assessee is not pressing its respective legal grounds in all the appeals. Therefore, the respective legal grounds, as urged in all the appeals, stand dismissed as not pressed. The Ld. AR advanced arguments on merits and referred to various documents in support of the same. Reference has been made to various case laws, the copies of which have been placed on record. The Ld. CIT-DR also advanced arguments supporting the orders of lower auth....
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....essee furnished return of income declaring income of Rs. 90.73 Lacs. The case was subjected to scrutiny wherein various notices were issued by Ld. AO from time-to-time u/s 142(1) which were duly been responded to by the Assessee. 2.2 The first issue that arose during assessment proceedings was alleged unaccounted cash purchases from Shri Kapil Gupta. This addition was made on the basis of Annexure A-1, A-2 & A-3 as found and seized from the residential premises of Shri Kapil Gupta of M/s Himgiri Group during search action on 04-11-2022. The search findings on that group revealed that M/s Himgiri Beverages was not maintaining any regular books of account. The business transactions were noted in three diaries as maintained by Shri Kapil Gupta for Calendar Years 2020, 2021 & 2022. These diaries contained date wise details of accounted and unaccounted purchase and sale transactions by the said group. In these diaries, few entries were mentioned as 'Rajesh'. The same was identified as Shri Rajesh Thakur as associated with M/s Rajput Wines, M/s Rajta Wines and M/s Ram Parkash. The statement of Shri Kapil Gupta was recorded u/s 132(4) and corroboration of these entries was sought to be....
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.....48 Lacs, addition of unexplained money u/s 69A for Rs. 3.50 Lacs & Rs. 41.82 Lacs respectively. 2.5 The addition of Rs. 17.48 Lacs is alleged cash sales by Shri Rajesh Thakur to Shri Inder Kalta. The same was on the basis of Pages 175 to 201 of Annexure A-8 as found and seized from business premises of M/s Rajput Wines and assessee at Gopal Building. These pages contained details of cash received from Shri Inder Kalta in lieu of cash sales of liquor. During search, statement of Shri Ashish Rajta was recorded u/s 131(1A) who admitted about unaccounted sales by Rajesh & Co. to Shri Inder Kalta. The statement of Shri Ashish Rajta was confronted to Shri Rajesh Thakur u/s 132(4) and he concurred with the same. Similar entries were found recorded on seized mobile phone of Shri Inder Kalta wherein the entries were found recorded in the name of 'Rajesh Solan'. Such unaccounted sales were quantified at Rs. 206.13 Lacs for AY 2022-23 and Rs. 336 Lacs for AY 2023-24. After rejecting assessee's submissions, Ld. AO computed average Gross Profit of 5.48% for FYs 2019-20 to 2021-22 which was enhanced by 3% on account of savings in accounting cost and fixed expenses on unaccounted sales. The G....
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....d by Shri Dharma Pal in statement u/s 132(4). Total cash collection as per the day book was quantified by Ld. AO at Rs. 14,13,50,748/- on which Ld. AO applied GP rate of 8.12% to make addition of Rs. 1,14,77,681/- u/s 28. Similar protective addition was made in the hands of Shri Rajesh Thakur through legal heir Shri Rahul Thakur. The fourth addition was for Rs. 51.10 Lacs which represent payment of salary and rent in cash, the evidences for which were found during search on assessee. The same were added as unexplained expenditure and added to the income of the assessee. Similar protective addition was made in the hands of Shri Rajesh Thakur through legal heir Shri Rahul Thakur. Another addition of Rs. 5,31,650/- was made which represent cash found from Gopal Building. The last addition of Rs. 77.23 Lacs is protective addition which represents cash found from residential premises of Shri Rajesh Thakur. The assessee stated that the cash belong to M/s Rajesh Kumar & Co. The said firm is retailer in which the assessee is a partner. Majority of the sales were in cash which were duly recorded in the regular books of accounts. The assessee furnished cash book of M/s Rajesh & Co. to ....
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....arch proceedings. Therefore, the addition as made in the hands of Late Shri Rajesh Thakur (prop. M/s Rajput Wines) has no basis. It has further been submitted that M/s Rajesh Kumar & Co. is engaged as retail vendor who has operated approx. 80 to 90 number of liquor vends. This entity sells liquor in cash to individual customers. The daily day book of all the vends were prepared and part of the cash sale was deposited in Banks and out-of- books sales were used for making payment to manufacturers against out-of-book purchases. The Ld. AR accordingly prayed for reasonable profit estimation on unaccounted sales as quantified by Ld. AO during the course of assessment proceedings. It has further been stated that once profit element has been estimated on the sales, the separate addition of unaccounted purchases could not be sustained. 4. We find that similar arguments have been accepted by us in the case of Smt. Ranjana Kalta & Ors. (supra). Therefore, taking the same view, we would accept the prayer of Ld. AR. Therefore, protective addition as made in the hands of Shri Rajesh Thakur on account of unaccounted purchases for AYs 2020-21 to 2022-23, as impugned before us, stand deleted. T....
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....,414/- for AY 2022-23 and addition of Rs. 10,08,000/- for AYs 2023-24. The impugned addition, in the hands of M/s Rajesh Kumar & Co., stand restricted to that extent. The protective addition of Rs. 17,48,050/- as made in the hands of Late Shri Rajesh Thakur for AY 2022-23 stand deleted. The corresponding grounds of respective appeals stand disposed-off accordingly. 5. The addition of Rs. 3,50,000/- as well as Rs. 41,82,780/- clearly represent advances made by the assessee-firm M/s Rajesh Kumar & Co. and the same do not have any income element. These advances have been sourced out of unaccounted sales by M/s Rajesh Kumar & Co. Therefore, both the additions, on substantive basis in the hands of M/s Rajesh Kumar & Co. as well as on protective basis in the hands of Late Shri Rajesh Thakur stand deleted. The corresponding grounds of respective appeals stand disposed-off accordingly. 6. In AY 2023-24, the addition of Rs. 1,14,77,681/- represent profit element on out-of-book sales. However, the submissions of the assessee are that these are recorded sales. The amount as recorded in these day books, as tabulated by Ld. AO, are as under: - Amount (in Rs. ) Particulars Annexur....