TaxTMI 
TaxTMI 
2026 (6) TMI 1338
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....pondent. 2. The appellant - Revenue has preferred these appeals under Section 260A of the Income Tax Act, 1961 (For Short "the Act") for the Assessment Years 2018-19 and 2019-20 being aggrieved by the common judgment and order dated 23.06.2025 passed by the Income Tax Appellate Tribunal, Rajkot Bench, Rajkot (For Short "the Tribunal") in ITA Nos. 248 and 249/RJT/2022 respectively. 3. The appellant - Revenue has proposed the following substantial questions of law in Tax Appeal No. 424 of 2026 for the Assessment Year 2018-19 : "(a) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in deleting the addition of unexplained sales of Rs. 10,01,45,000/- made on the basis of data in "EmmEss" sof....
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....made on the basis of the cogent material and relevant evidence on record ? (b) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in deleting the addition of unexplained sales of Rs.2,62,10,100/-, ignoring the fact that during the course of assessment proceedings the assessee has himself admitted such unaccounted sales and had requested to estimate the profit of such unaccounted transactions adopting GP/NP ratio of average of last three years ? (c) Whether in the facts and circumstances of the case and in law, the learned ITAT had erred in deleting the addition of unexplained sales of Rs. 2,62,10,100/- without considering the fact that the Assessing Officer has made addition after due....
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....as found and impounded. It was found by the Assessing Officer that on analysis of the said impounded digital data found from M/s. V.K. Group, it was noticed that the assessee was using "EmmEss-Gold" software in which certain incriminating data relating to unaccounted gold bullion purchases made by M/s. V.K. Group had been found which revealed that the V.K. Group had purchased unaccounted gold bullion from the respondent assessee during the Financial Years 2017-18 and 2018-19 relevant to the Assessment Years 2018-19 and 2019-20. 5.3. The Assessing Officer, therefore, made additions of Rs. 10,01,45,000/- in the total income of the assessee under Section 69 of the Act. Being aggrieved, the assessee preferred appeals before the Commissioner ....
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....said software, there was one more module and when such module is entered, the weight of gold purchase along with name of party was duly mentioned. These particulars were matched with the books of accounts and they were found to be matching. The appellant has also submitted the copy of account of entities of V. K. Group from his books and contra accounts from the books of entities of V. K. Group. These accounts are matching and tallied. These facts together automatically lead to conclusion that there is no unaccounted sale by the appellant to the entities of V. K. Group. The entire addition was the result of incorrect interpretation of the EmmEss software and such incorrect interpretation was corrected by the AO himself while framin....
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...., the assessee filed his return of income for A. Y. 2018-19 on 02.03.2021, declaring total income at Rs. 26,49,610/-. Simultaneously, there was a survey u/s. 133A of the Act, carried out on 16.01.2020, in case of one V. K. Group during the course of which certain digital data from, the software 'EmmEss-Gold" was extracted and impounded by the Income Tax Department. The relevant digital data contained the details of gold purchase with all the entries marked as '1' along with cumulative balance on different dates. During the course or assessment proceedings, the assessing officer proposed addition of Rs.10,01,45,000/- on account of alleged unaccounted sale on the basis of alleged incriminating materials from the ....
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....peals) and Tribunal had committed an error by allowing the appeals of the assessee by deleting the additions made by the Assessing Officer on the ground of unaccounted sales made by the assessee to M/s. V.K. Group. 7. On the other hand, learned advocate Mr. Darshan Patel appearing for the respondent assessee has submitted that the CIT (Appeals) and the Tribunal have arrived at a finding of fact that no addition was made in the hands of the V.K. Group on account of unaccounted purchases. It was further pointed out that there was a misinterpretation of the software "EmmEss Gold" by the Assessing Officer of M/s. V.K. Group and, therefore, an explanation was sought by the CIT (Appeals) and considering such explanation of the Assessing Office....