TaxTMI 
TaxTMI 
2026 (5) TMI 1061
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....order passed u/s 143(3) r.w.s. 144B is bad in law, arbitrary, and based on mechanical reliance on third-party data without independent application of mind. 2. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in confirming the addition of Rs. 16,05,350/- as unexplained investment u/s 69 r.w.s. 115BBE of the Act, despite the appellant's categorical denial any of transaction with M/s Tirth Gold and submission of declaration from the said party confirming no transaction. 3. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in relying solely on third-party digital data (AUG-ERP software) seized during search on M/s Tirth Gold,....
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....ts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in failing to consider and appreciate the detailed submissions and corroborative evidence furnished by the assessee in support of the claim made. 9. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in invoking provisions of section 115BBE of the Act. 10. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in sustaining the initiation of penalty proceedings u/s 271AAC(c) of the Act. 11. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. Total tax effect Rs. ....
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.... both accounted as well as its unaccounted transactions in the specified software which do not correspond to the transactions reported in their respective ITR 5 and GST return. After taking cognizance of the assessee's details, the Assessing Officer held that though the assessee has filed copy of declaration of non-selling with Tirth Gold, it is found to be non-maintainable in the light of the information gathered including the statements of Shri Pradip P. Bhuva and Shri Anup Kirtibhai Joshi. Thus, the Assessing Officer made addition of Rs. 16,05,350/- in respect of unaccounted purchases transactions with Tirth Gold and its sister concern as unaccounted investment u/s. 69 of the Act. 4. Being aggrieved by the assessment order, the assess....
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.... actual transactions in the absence of corroborative evidence such as bills or invoices. The AO relied primarily on the statement of, a third party, and the ledger entries to make the additions. On plain reading of the statement of oath of various person it was observed that all statements did not specifically identify the transactions as relating to the assessee, and no specific questions were asked to them on this aspect. Importantly, the assessee was not confronted with this statement. The AO by recording order made a story telling unit to lengthen the order by making story of some 4 to 5 entities to whom assessee is not concerned. The table of Purchase and Sales data depicts is reflection of mechanical process of AUGERP software and you....
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....rd-party information/entries. The Assessing Officer must conduct independent inquiries to link the seized material to actual undisclosed income of the assessee and bring concrete material on record. Further, additions were based on surmises and conjectures without legally admissible evidence. The A.O. had confirmed the additions based solely on the assumption and presumption and findings without independent corroboration. Thus, the impugned additions under sections 69 lacked a sound legal basis. The ld. A.R. relied upon the following decisions:- i) CIT v. P.K. Noorjehan (Supreme Court) ii) Allahabad High Court in ITO v. Daya Chand Jain Vaidya: iii) Kishinchand Chellaram v. CIT (1980) 125 ITR 713 (SC) iv) ....