TMI Blog2020 (1) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... is. More so, when the selling dealer has responded to notice issued under section 133(6) by the Assessing Officer and has confirmed the sales made to the assessee PCIT has not expressed any opinion as to whether the entire purchase should have been disallowed or only profit element has to be added. He has again left the issue open for the decision by the Assessing Officer while directing him to make afresh assessment. When the Assessing Officer has already passed the assessment order after making necessary enquiry and applying his mind to the materials brought on record, it is not understood what more can be achieved by setting aside the assessment order and restoring the issue to him for making a fresh assessment without any specific di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured loans. It was found that the assessee has shown purchases of ₹ 37,32,250, from Shri Anoop Yogendra Jain (M/s Aadi Imoex) during the year under consideration who is affiliated to Shri Rajendra Jain Group. On the basis of such information, the Assessing Officer re opened the assessment under section 147 of the Act. In the course of assessment proceedings, the Assessing Officer called upon the assessee to furnish various details to prove the purchases. Further, to verify the genuineness of purchases made from M/s Aadi Impex, the Assessing Officer issued notice under section 133(6) of the Act. After taking note of the information received and other material on record, the Assessing Officer was of the view that the assessee had not pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th February 2019, went without any response from the assessee. Accordingly, he proceeded to pass the impugned order under section 263 of the Act holding the assessment order to be erroneous and prejudicial to the interests of Revenue, as according to him, the Assessing Officer has passed such order without application of mind. Thus, ultimately, the learned PCIT set aside the assessment order with a direction to the Assessing Officer to assess the income of the assessee afresh after following due procedure. 3. The learned Authorised Representative submitted, in the course of assessment proceedings the Assessing Officer has specifically enquired into the purchase transaction with M/s Aadi Impex by calling upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment years. Further, he submitted, the reliance upon the decision of the Hon'ble Supreme Court in N.K. Proteins (supra) is totally irrelevant as the said decision is factually distinguishable and not applicable to the facts of assessee s case. Thus, he submitted, the order passed under section 263 of the Act should be quashed. In support of such contention, learned Authorised Representative relied upon the following decision: i) Yogesh C. Lakkad v/s ITO, ITA no.2464 2466/Mum./2019, dated 16th August 2019; and 4. The learned Departmental Representative strongly relying upon the observations of learned PCIT submitted, the observations / conclusion of the Assessing Officer with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erspective the aforesaid reasoning of learned PCIT if we delve into the facts arising from record, it can be seen that the Assessing Officer initiated proceedings under section 147 of the Act having reason to believe that the purchases worth ₹ 37,32,250, claimed to have been made from Anoojj Yogendra Jain, is non genuine. In the course of assessment proceedings, the Assessing Officer enquired into the aforesaid aspect by calling upon the assessee to furnish documentary evidence to prove the purchase of goods. As it transpires from the record, in response to the query raised by the Assessing Officer, the assessee furnished various documentary evidences such as stock register, re sale identification statement, quantitative tally of purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s applied his mind to the materials brought on record. In fact, the disputed purchase is the sole reason for which the assessment was re opened under section 147 of the Act. In view of the aforesaid factual position, the observations of learned PCIT that the Assessing Officer has not applied his mind or has not made enquiry which he should have made, in our view, is without any factual basis. More so, when the selling dealer has responded to notice issued under section 133(6) by the Assessing Officer and has confirmed the sales made to the assessee. As regards the decision rendered in case of N.K. Proteins we must observe, in the facts of the said case, a search and seizure operation was conducted in the premises of the assessee and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
