TaxTMI 
TaxTMI 
2026 (5) TMI 1632
X X X X Extracts X X X X
X X X X Extracts X X X X
....o be passed on 22/03/2024 by making several additions against the Assessee. As against the assessment order, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 08/07/2025, partly allowed the Appeal. Aggrieved by the order of the Ld. CIT(A) dated 08/07/2025, both the Assessee as well as the Revenue have preferred the respective Appeals on following grounds: ITA No. 5758/Del/2025 (A.Y. 2023-24) (Assessee) "1. On the facts and circumstances of the case and in law, the assessment order passed by the assessing officer is bad-in-law without jurisdiction and barred in limitation and CIT(A) erred in not holding so. 2. On the facts and circumstances of the case and in law, the notice u/s 143(2) issued in this case is bad-in-law and without jurisdiction and, therefore, the said notice alongwith assessment order passed on the foundation of such notice are liable to be squashed. 3. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition made by the Ld. Assessing Officer to the extent of Rs. 11,61,307/- on account of alleged unaccounted sales. 4. On the facts and circumstances of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....03/- on incorrect appreciation of evidences and by applying GP rate instead of treating the entire undisclosed cash transaction as income, especially in light of corroborative statements and seized materials. 5. Whether on the facts and circumstances of the ease. Ld. CIT(A) wrongly applied the GP rate of 10.98% in this issue without establishing the legitimacy of purchases or stock movement to support such sales. 6. Whether on the facts and circumstances of the case, Ld. CIT(A) erred in restricting the addition of Rs. 6.03,060/- to Rs. 66.216/- by applying GP rate without rebutting the admission of the production supervisor recorded under oath and without verifying inventory movement related to unaccounted sales. 7. Whether on the facts and circumstances of the case. Ld. CIT(A) failed to appreciate that unrecorded cash was admitted by assessee to be used for unaccounted expenditure, thereby validating the full sale value as assessable income. 8. Whether on the facts and circumstances of the case. L.d. CIT(A) erred in restricting the addition of Rs. 97.38.775/- to Rs. 10,69,318/- by applying GP ratio, ignoring the fact that the assessee failed to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....k of material for FY 2022-23, disregarding that the statements recorded, together with analysis of seized documents, constituted sufficient evidence to support the AO's reasonable estimation? 17. (a) The order of Ld. CIT (A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." 3. The Ld. Counsel for the Assessee submitted that the Assessee wishes not to press Ground No. 1 & 2.Recording the submission of Ld. Ld. Assessee's Representative, the Ground No. 1 & 2 of the Assessee are dismissed as not pressed. 4. In Ground No. 3 of the Assessee and Ground No. 2 & 3 of the Revenue are regarding action of the Ld. CIT(A) in deleting partial additions and confirming the addition made by the A.O. to an extent of 11,61,307/- on account of unaccounted sales. The Ld. Counsel for the Assessee submitted that the Ld. CIT(A) should have deleted the entire addition and the Ld. CIT(A) committed error in sustaining the addition to an extent of Rs. 11,61,307/-. 5. Per contra the Ld. Departmental Representative canvassing on Groun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the Assessee and Ground No. 6 & 7 of the Revenue are dismissed. 11. Ground No. 6 of the Assessee and Ground No. 8 & 9 of the Revenue are regarding action of the Ld. CIT(A) confirming the addition made by the A.O. of Rs. 10,69,318/- on account of unaccounted sales. 12. The A.O. made addition of unaccounted sales of laminates based upon certain seized material of Rs. 97,38,775/- which being entire sale. The Ld. CIT(A) after detailed discussion and relying on the various case laws, held that entire amount of sales cannot be treated as income and profit embedded in the sales can be treated as income and hence restricted the GP rate @ 10.98% at Rs. 10,69,318/-. We find no error or infirmity in the approach of the Ld. CIT(A) in confirming the said addition. Accordingly, the Ground No. 6 of the Assessee and Ground No. 8 and 9 of the Revenue are dismissed. 13. Ground No. 7 of the Assessee and Ground 12 to 14 of the Revenue are against the action of the Ld. CIT(A) in confirming the addition made by the A.O. ofRs. 28,23,512/- on account of alleged unexplained expenditure u/s 69C of the Act. 14. The Ld. Counsel for the Assessee submitted that the addition made by the A.O. on acc....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... were made and not recorded in the books of account. Thus, sought for allowing Ground 10 & 11 of the Revenue. 19. Per contra, the Ld. Assessee's Representative submitted that all the scrap sales were already recorded in the books of account and there was no unaccounted sale of scrap, therefore, sought for dismissal of Ground No. 10 7 11 of the Revenue. 20. We have heard both the parties and perused the material available on record. The A.O. made addition of Rs. 18,51,488/- on account of alleged unaccounted scrap sales. The Ld. CIT(A) after verifying the material on record, gave a factual finding that, all the scrap sales were already recorded in the books of account and there was no unaccounted sale of scrap. Before us, the revenue could not bring any material contrary to the said factual finding of the Ld. CIT(A). In view of the same, we find no merits in Ground No. 10 & 11 of the Revenue. Accordingly Ground No. 10 & 11 of the Revenue are dismissed. 21. Ground No. 15 and 16 of the Revenue are directed against the order of the Ld. CIT(A) in deleting the addition of Rs. 1,13,72,604/-. The Ld. Departmental Representative submitted that, said expenditure has been admitted....