ITA No. 17/CHD/2024

Parties Involved

Facts Summary

Jain Amar Clothings Pvt. Ltd. is a company engaged in the manufacture of ladies garments with a total turnover of Rs. 156,05,88,457/- during the year under consideration. A search and seizure operation was conducted on 26.02.2016. The company conducted random stock audits at its branches to check and control the stock sent to different outlets. Certain nominal discrepancies in stock were found, which were recorded in the respective branches' sales. The Assessing Officer calculated the discrepancy to the tune of Rs. 7,89,016/- and made an addition of Rs. 4,61,495/-. The CIT(A) deleted this addition as the discrepancies were already taken care of while filing the return of income. The Revenue appealed against the CIT(A)'s order.…

Legal Issues

• 1. Whether the CIT(A) was justified in holding that no incriminating material was found during the search on account of suppression of sales.
• 2. Whether the CIT(A) was justified in deleting the addition of Rs. 4,61,495/- made by the AO based on incriminating data retrieved from the hard disk.
• 3. Whether the CIT(A) was justified in deleting the addition of Rs. 4,63,42,796/- by relying on the judgment of the Hon'ble Supreme Court in the case of PCIT, Central-3 vs. Abhisar Buildwell Pvt. Ltd.
• 4. Whether the CIT(A) was justified in ignoring the decision of the Hon'ble Supreme Court in the case of M/s Keserwani Zarda Bhandar Sahson, Allahabad.
• 5. Whether the additions made on the basis of other material can be deleted if the additions made on the basis of incriminating material are wrongly deleted by the appellate authority.
• 6. Whether the CIT(A) was justified in holding that books of accounts u/s 145(3) have not been rejected by the AO.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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