2026 (5) TMI 1258

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.... passed u/s. 143(3) of the Act by the DCIT, Central Circle, Akola, for the Assessment Year 2022-23. 2. The sole issue raised by the Revenue in this appeal is that Ld. CIT(A) erred in deleting the addition of Rs. 1,21,72,000/- made by the Ld. Assessing Officer (AO) u/s. 69A of the Act. 3. Brief facts of the case are that assessee is a private limited company, engaged in the business of manufacturing of palm oil. It has filed its return of income for the AY 2022-23 declaring income of Rs. 5,35,09,880/- on 31.10.2022. A search and seizure action u/s. 132 was conducted in assessee's group at Visakhapatnam on 25.08.2021 and certain loose papers and note-pads were found and seized. Consequent to search action, case was selected for compulso....

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....e papers and note-pads were found and seized which clearly evidenced unrecorded cash sales carried on by the assessee outside the regular books of account. He further submitted that assessee failed to satisfactorily explain the nature and source of such unaccounted receipts before the Ld. AO. Therefore, Ld. AO rightly treated the amount of Rs. 1,21,72,000/- as unexplained money u/s. 69A of the Act. Learned DR further contended that Ld. CIT(A) erred in restricting the addition merely to gross profit at 11.64% by following the orders of earlier years without independently appreciating the facts and evidences pertaining to the current assessment year. According to the learned DR, the seized material clearly established the generation of unacco....

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....e addition to 11.64% being the average gross profit rate on the alleged unrecorded cash sales of Rs. 1,21,72,000/- and the Revenue has not brought on record any distinguishing facts or circumstantial evidence in the year under consideration as compared to earlier years. Therefore, the order of the Ld. CIT(A) being consistent with the views countenanced by the very same bench wherein Hon'ble AM was a member of the Corum and was also the author, particularly in view of the fact that these orders were never overturned by any higher authority, deserves to be upheld. 7. We have heard rival contentions of both the parties and perused the material available on record. We find that an identical issue had come up for consideration before this....