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Judgment
This assessee’s appeal for Assessment Year 2012-13 arises against the Commissioner of Income Tax (Appeals)/National Facele ss Appeal Centre (for shor t, ‘CIT(A)/NFAC’), Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1066772978(1), dated 16.07.2024, invo lving pro ceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961; hereinafter referred to as, “the Act”.
Heard both the parties at length. Case file perused.
It transpires during the course of hearing that the assessee/appellant before us challenges both the learned lower authorities’ re spective assessme nt and lower appellate discussion treating its mobile sale receipts of Rs. 45 lakhs relating to M/s Krishna Sales Corporation; as unexplained cash credits u/s 68 of the Act r.w . commission expenditure thereof @2% coming to Rs. 90,000/-; respectively.
It is in this factual backdrop that we procee d to deal w ith the assessee’s aforesaid so litar y substantive ground. It is made clear that there is no dispute at all betwe en the par ties that the assessee had de clared total mobile sales tr ading rece ipts amounting to Rs. 20,70 ,95,352/- wherein the sole issue herein before us is that of the forego ing sales made to M/s Krishna Sales Corporation o nly. The assessee has admittedly failed to prove identity, genuineness and creditworthiness thereof all along. All this leads us to a conclusion that although it has declared sales receipts coming from the aforesaid party, the same could no t be substantiated before both the learned lower authorities. Meaning thereby that this is an instance o f the assessee’s sales outside books wherein a further GP estimation @ 3% thereo f would meet the end of justice as against 2.6% already declared at its behest. We thus direct the learned Assessing O fficer to finalize the necessary computation as per law . This assessee’s sole substantive ground is partly accepte d in very terms therefore.
This assessee’s appe al is partly allowed.