TaxTMI 
TaxTMI 
2026 (4) TMI 1476
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....the Act on 21-02-2025. In the assessment order, Ld. AO has made various protective as well as substantive additions which could be tabulated as under: - Particulars Amt. (Rs.) Substantive Additions Addition of unexplained money u/s 69A Rs.77,23,500/- Addition of out of books cash expenditure u/s 69C Rs.3,66,744/- Addition of out of book sales u/s 28 Rs.11,271/- Protective Additions Addition of out of books cash expenditure u/s 69C Rs.2,00,00,000/- Addition of out of book sales u/s 28 Rs.27,28,320/- Addition of out of book sales u/s 28 Rs.1,14,77,681/- Addition of out of books cash expenditure u/s 69C Rs.51,10,000/- Addition of unexplained money u/s 69A Rs.5,31,6....
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.... 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 done on the basis of excise records and evidence seized from the premises of Sh....
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....ng 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. 336 Lacs for this year. After rejecting assessee's submissions, Ld. AO computed average Gross Profit of 5.12% for FYs 2020-21 to 2022-23 which was enhanced by 3% on account of savings in accounting cost and fixed expenses on unaccounted sales. The Gross Profit (GP) rate of 8.12% was accordingly ap....
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....pinion, separate addition of unaccounted gross purchases could not be sustained in the hands of the assessee. The quantum of unaccounted sales for AY 2022-23 is Rs. 2,06,13,800/- whereas the said figures for AY 2023-24 is Rs. 3,36,00,000/-. Both these figures far exceed the quantum of unaccounted purchases of Rs. 188 Lacs & Rs. 200 Lacs for AYs 2022-23 & 2023-24 respectively. Therefore, the separate addition of Rs. 188 Lacs and Rs. 200 Lacs stand deleted. On unaccounted sales, Ld. AO is directed to apply profit rate of 3% which would sustain addition of Rs. 6,18,414/- 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 ....
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....ddition u/s 69A for Rs. 5,31,650/- which represent cash found from Gopal Building. The same was added on substantive basis in the hands of M/s Rajesh Kumar & Co. and on protective basis in the hands of the present assessee. The Ld. CIT(A) deleted protective addition with identical rider. 7. We find that all the above three issues have been adjudicated by the Tribunal in Para-6 as under: - 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 Annexure A-3 (Sept., 2022) Annexure A-4 (Oct., ....
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....premises of Shri Rajesh Thakur who stated that the cash belong to M/s Rajesh Kumar & Co. The said firm acted as retailer in which the assessee was 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 establish availability of cash. However, substantive addition was made in the hands of present assessee whereas protective addition was made in the hands of M/s Rajesh Kumar & Co. The Ld. CIT(A) confirmed this addition against which the assessee is in further appeal before us. 9. This issue has been adjudicated by the bench at Para-7 as under: - 7. The last addition is protective addition of Rs. 77.23 Lacs which represent cash....