2026 (4) TMI 1377

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.... "(1) On the facts and circumstances of the case and in law the Ld CIT has erred in deleting the addition made of Rs. 3,16,45,470/- by the AO on account of unexplained cash credits within the meaning of section 68 of the Act for not substantiating the source & genuineness of such substantial credits. (ii) On the facts and circumstances of the case and in law the Ld. CIT has erred in accepting the additional evidences although there was no valid reason for the same as per Rule 46A of Income-Tax Rule. (iii) On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in treating the unexplained credits of as turnover of the assessee from cheque discounting and estimated commission @ 0.15% on the same ....

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.... case, information has been received from the ADIT(Inv.)-1, Surat that assessee was having five bank accounts bearing No.058405500365, 005205005378, 58405000812, 58405000610 & 058101510247 maintained with ICICI bank, Surat in the name of Jashraj Creation, Shree Krishna Enterprise. The total credits in these accounts were of Rs. 3,22,46,830/- for the year under consideration. The assessee was not traceable during the course of inquiry made by the ADIT(Inv.)-1, Surat and even summons issued by the ADIT(Inv.)-1, Surat was remained unserved and returned with remarks Party Left'. Moreover, it is observed by the ADIT(Inv)-1, Surat that assessee's nature of business prima facie appears as a cheque discounter but no corroborative evidence c....

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.... of embroidery job work income, I find it necessary to mention that the AO has picked up transactions which have been received as job work charges, however, did not even discuss about the job work charges received through cheques. As per the remand report submitted by the AO the assessee had shown total turnover of Rs. 6,01,360/- for AY 2010-11 wherein embroidery job work of Rs. 5,26,545/- was included. Therefore, the AO was not justified in making additions of total amount on assumption and presumption basis. In such type of business, the NP rate varies from 5 to 15%. In the absence of any satisfactory documents submitted nor brought on record by the AO, I deem it fit to apply a NP rate of 8%. Therefore, the addition made by the AO to the ....