TaxTMI 
TaxTMI 
2026 (10) TMI 43
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....tion 143(3)/ 147 of the Income Tax Act, 1961 (in short "the Act". 2. The Revenue has raised the following ground in appeal as under: 1.Whether the Ld. CIT(A) has erred in deleting the addition in respect of unaccounted sales by holding that AO had not brought out any incriminating evidence warranting extrapolation for the relevant Assessment Year? 2. Whether the Ld. CIT(A) has erred in the facts and in law by not making cognizance of the notebook containing reference to Monu (Gaurav Agarwal) & M Hassen or whatsapp chats or cash sales of tobacco to Tej Ram Dharam Pal Or Transactions with Om Sai Traders & Shakti International trading P Ltd all of which proved that the assessee was involved in accounted transactions with m....
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.... authority proceedings under section 147 of the Act were under taken and notice under section 148 of the Act dated 29-03-2023 was issued to the assessee. In the compliance of the notice the assessee filed return on income on same. The statutory notices along with questionnaire were issued to the assessee. According to the Assessing Officer the assessee has not filed satisfactory explanation and had earned income through undisclosed sales. The Assessing Officer found that the assessee had made the unaccounted sales of Rs. 172,85,000/- during the period 30-12-2021 to 09-02-2022. The Assessing Officer completed the assessment proceedings after making the addition of 2,62,45,457/- after taking the gross profit @ 10.35% of the unaccounted sales ....
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.... evidence supporting this assertion. Had the Appellant been regularly involved in unaccounted transactions and earning undisclosed profits as calculated by the AO., such activities would likely manifest in some form, such as undisclosed assets or unaccounted expenditure. No such information was discovered during the search. 4.7In this case facts and circumstance of the case has been carefully perused and found neither the Ld. AO nor the search team has brought any incriminating evidence warranting the extrapolation of information to presume unaccounted sales for FY 2020-21 (AY2021-22). Therefore, I am of the considered opinion that the addition of Rs. 2,62,45,457/- lacks justification. 4.8 Therefore. After careful consider....
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....Agarwal. The addition was made in the mechanical manner without considering that no incriminating material was found during the search except some loose sheets of paper pertaining to an earlier period and a few Whatsapp chats. The addition was made purely on surmise and conjecture basis. The Assessing Officer has made the addition for five years AYs on account of unaccounted sales, on the estimation basis, The Assessing Officer has the taken the 41 days sales supportive material data for all the five years AYs on which estimation the additions were made. The sales cannot be calculated for the five AYs on the basis of the 41 days sales. He further submitted that no assets were found during the search proceedings. Reliance is placed on the fo....