HARIKRUSHNA ORNAMENT,BHAVNAGAR vs. ITO WARD 1(10) BHAVNAGAR, BHAVNAGAR

The Ld. CIT(A) has erred in law and on facts in upholding the assessment order of the Ld. AO u/s. 143rw.s. 1448 of the Act which is bad in law and without Juri iction.

The Ld. CIT(A) has erred in law and on facts in confirming the addition of alleged unaccounted purchases made by Ld. AO without providing material relied upon natural justice,

The Ld. CIT(A) has erred in law and on facts in upholding the action of the Ld. AO in placing reliance on the information purportedly received from the DDIT (Investigation), Unit-3, Surat alleging that the appellant had effected purchases aggregating to Rs. 1,90,67,135/- from M/s Parth Ornaments Pvt. Ltd., which assertion is factually incorrect and does not pertain to the appellant.

The Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 16,49,195/- by estimating net profit @ 8% of unaccounted turnover of Rs. 2,06,14,933/- under the head income from business or profession based on the incorrect and unreliable information available with the id. AO.

The Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 8,84,761/-under the head income of from business or profession on account of unaccounted capital calculated on alleged unaccounted purchase.

Without prejudice, Both the Ld. CIT(A) and the Id. AO have passed the order without appreciating the facts and they have erred in calculating the unaccounted sales of Rs.2,06,14,993/- based on unaccounted purchase of Rs. 1,76,04,554/-and Gross profit of 7.10% worked out from the ITR.

Without prejudice, the estimation of profit at the 8. The Ld.CIT(A) has erred in law and on facts of the case in confirming action of the Ld.AO in levying interest u/s.234A/B/C/D of the Act.

The learned CIT(A) has erred in law and facts of the case in confirming action of the AO in initiating penalty u/s.270A of the Act.

The appellant craves leave to add, amend, alter, edit, delete modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.

The brief facts of the case are that assessee is a partnership firm engaged in the business of manufacturing and trading in gold and silver ornaments, which was later converted into an LLP with effect from 19.11.2025. For A.Y. 2023-24, the assessee filed its return of income declaring total income of ₹19,07,270, duly supported by audited books of account. The case was selected for scrutiny and notices under Sections 143(2) and 142(1) of the Income-tax Act, 1961 were issued. During the assessment proceedings, the Assessing Officer alleged that the appellant had undertaken unaccounted transactions with M/s Parth Ornaments Pvt. Ltd. based on information received from the Investigation Wing and certain Excel sheets found during search proceedings in the case of Parth Group. The assessee, however, submitted complete books of account, GST records, ledger accounts, and confirmations showing actual purchases of Rs.14,62,581 only from the said party and denied any unaccounted transactions. Despite this, the Assessing Officer treated the difference as unaccounted purchases, estimated corresponding sales and profit, and also made an addition towards alleged unaccounted capital, thereby making total addition of Rs.25,33,956. The CIT(A) upheld the action of the Assessing Officer, against which the assessee is in appeal before the Tribunal.

Heard the argument of both the parties and perused the material on record. The issue involves reconsideration of purchases along with ledger, the matter is remanded to the file of Juri ictional Assessing Officer for reconsideration. The assessee is directed to furnish all necessary details, explanations, and supporting documents as and when called for by the Juri ictional Assessing Officer during the course of assessment or verification proceedings

In the result, the appeal filed by the assessee is allowed for statistical purposes.

""थ" / The Respondent. 3. संबंिधत आयकर आयु" / Concerned CIT 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file.