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Addl. CIT Special Range Vs. Ghaziabad Ship Breakers Pvt. Ltd.

Case No: ITA No.5070/Del/2024
Court: INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH, ‘B’: NEW DELHI
Date: 1/14/2026

Parties Involved

appellantAddl. CIT Special Range
respondentGhaziabad Ship Breakers Pvt. Ltd.

Facts Summary

The case pertains to the assessment year 2017-18 where the Assessing Officer (AO) made additions to the income of Ghaziabad Ship Breakers Pvt. Ltd. on account of unexplained cash sales, under valuation of closing stock, and unexplained expenditure. The AO had added Rs. 1,32,90,625 for unexplained cash sales, Rs. 59,06,664 for under valuation of closing stock, and Rs. 24,21,489 for unexplained expenditure. The Commissioner of Income Tax (Appeals) (CIT(A)) deleted these additions based on the evidence and submissions provided by the assessee. The revenue has appealed against this order.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the addition of Rs. 1,32,90,625 for unexplained cash sales is justified.
  • 2. Whether the addition of Rs. 59,06,664 for under valuation of closing stock is justified.
  • 3. Whether the disallowance of Rs. 24,21,489 for unexplained expenditure is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

2 precedents cited in this judgement.

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