TMI Blog2023 (12) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... puting the tax on sales. Hence, we are inclined to allow 8% on the sales made by the assessee as income of the assessee. Accordingly, the Ld. AO is directed to work out the income of the assessee and tax the same in accordance with law. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member And Shri S Balakrishnan, Hon ble Accountant Member For the Assessee : Sri GVN Hari, AR For the Revenue : Sri Madhukar Aves, Sr. AR ORDER PER S. BALAKRISHNAN, ACCOUNTANT MEMBER : This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [NFAC] in DIN Order No. ITBA/NFAC/S/250/2023-24/1055740880(1), dated 5/9/2023 arising out of the order passed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat during the course of investigation in the case of M/s. Laxmi Remote (India) Private Limited a statement was recorded from Sri Prakash Chand Sachdeva, one of the Directors of M/s. Laxmi Remote (India) Private Limited, wherein it was stated by him that M/s. Laxmi Remote (India) Private Limited had made cash sales worth Rs. 1,12,27,707/- to M/s. Ajay Electronics during the AY 2017-18. Therefore, the Ld. AO treated the cash purchases of Rs. 1,12,27,707/- made by the assessee as unexplained money u/s. 69A of the Act and brought it to tax in the hands of the assessee and determined the assessed income at Rs. 1,12,33,607/- and passed the assessment order dated 3/12/2019. Aggrieved by the order of the Ld. AO, the assessee preferred an appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent of Rs. 1,12,24,707/- during the AY 2017-18, as per the IVMS software maintained by the company used to record the genuine and original sales taken place. The same was also admitted / confirmed by the Director of the said company Sri Prakash Chand Sachdeva in his sworn statement recorded u/s. 132(4) of the Act on 23/8/2017 by the investigation authorities. 3. The Ld. CIT (A) erred in not appreciating the fact that the sanctity of the information provided by the investigation unit Delhi with material evidences, after thorough investigation cannot be doubted until and unless there is another strong material evidence, which proves that the information given by the investigation authority is wrong, fictitious and cannot be reliable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash purchases made by the assessee from M/s. Laxmi Remote (India) Pvt Ltd as reported by the Investigation Unit for the AYs 2014-15, 2015-16, 2016-17 and 2018-19 by not filing the appeals made by the FAO, NeFAC in these AYs whereas the cash purchases reported by the investigation unit for the AY 2017-18 are denied by the assessee. 8. Any other grounds of appeal that emerge out of the appeal proceedings from time to time. 4. At the outset, the Ld. Departmental Representative submitted that the assessee has accepted the out of books sales in the earlier assessment years as well as in the subsequent assessment year (i.e., AYs 2014-15, 2015-16, 2016-17 2018-19), and therefore it was pleaded that the order of the Ld. AO for the AY 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in [2007] 165 Taxman 638 (SC) the Hon ble Supreme Court has observed as follows in Para 29: Under the income tax Act the tax is on the income and not on gross receipts. It is also important to bear in mind that u/s. 4 the levy is on total income of the assessee computed in accordance with and subject to the provisions of the Income Tax Act. What is to chargeable to tax under the Income Tax Act is the profit and gains of a year. What is chargeable to tax under the Income Tax Act is not gross receipts but income .. Hon ble Gujarat High Court in the case of CIT vs. President Industries [258 ITR 654] (Gujarat HC) has held that it cannot be the matter of an argument that the amount of sales by itself cannot represent the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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