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2014 (7) TMI 1119 - HC - Income TaxRevision u/s 263 - Unexplained sales and unexplained purchases - Held that:- The Tribunal had accepted that there was no unexplained income on account of either sales or purchases. The addition was sought to be made by the Income-tax Department on the basis of statement made by Shri Harmesh Arora before the Central excise authorities in the context of levy of excise duty on unaccounted production. It was not disputed by the learned counsel for the Revenue that the Commissioner of Income-tax (Appeals), the Central Excise Department had deleted the addition of excise duty levied which has been upheld by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (in short "the CESTAT"). A copy of order dated April 28, 2014, passed by the CESTAT has been produced by learned counsel for the Revenue wherein it has been held that there was no evidence to show that there was clandestine manufacture and clearance of the ingots in question. The Income-tax Department had not collected any independent material to arrive at the conclusion that there was unexplained sales or purchases made by the assessee. It was only on the basis of the statement of Shri Harmesh Arora before the excise authorities in which the Tribunal had noticed various contradictions and gaps. In the facts and circumstances, on the basis of the statement made by Shri Harmesh Arora alone before the excise authorities which did not find corroboration from any other material, no addition could have been validly made Tribunal had rightly come to the conclusion that there was no unexplained income on account of sales or purchases of material. - Decided in favour of the assessee.
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