Unaccounted sales addition without adverse material cannot be sustained

DCIT Vs Mahamaya Steel Industries Ltd (Chhattisgarh High Court) Chhattisgarh High Court held that addition on account of unaccounted sales based on estimated production yield in complete absence of any adverse material is rightly deleted. Accordingly, substantial question is answered in favour of assessee. Facts- The respondent (assessee) is engaged in the manufacturing of re-rolled products such as heavy steel structural, joist and girder. Post search operations, AO has made an addition on account of unaccounted sales based on an estimated production yield of 89% in the assessee’s SMS Divis...