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2022 (8) TMI 206 - HC - Income TaxSuppressed profits from the unaccounted transactions - Estimation of Profit element on unaccounted sales - Addition as difference as unexplained investment and adjusted the same in the closing stock - HELD THAT:- According to ITAT, CIT(A) had taken profit element on unaccounted sales at 1% of unaccounted sales and considered the balance amount of difference as unexplained investment and adjusted the same in the closing stock. Shri. Chandrasekar is right in his submission that this finding is not found in the order passed by CIT(A). ITAT has recorded a further finding that assessee had adjusted the closing stock in re-cast accounts. If this finding is accepted, the question of adjusting the difference as 'unexplained investment' does not arise. Appellant has raised this specific ground in Memorandum of appeal. Thus, we are of the considered view that the findings recorded by the ITAT in para 11.5.6 is not sustainable and therefore, this appeal merits consideration.
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