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TMI Blog2020 (10) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 The Revenue has proposed the following substantial questions of law for the consideration of this Court: "[A] Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in quashing the order u/s 263 of the Income tax Act, 1961, passed by the Principal Commissioner of Income Tax? [B] Whether Tribunal was justified in facts and in law in ignoring the finding of the Principal Commissioner of Income Tax that necessary enquiries had not been conducted by the Assessing Officer while framing assessment in undue haste resulting in non application of mind on the part of the Assessing Officer? [C] Whether on the facts of the case and in law Tribunal is right to hold that the Assessing Officer conducted neces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under Sections 143(3) read with 263 and 142(2A) respectively of the Act, 1961 was passed on 11th November 2016 making various additions on the basis of the report of the special audit as well as the order passed under Section 263 of the Act. The issue related to the payment to the related parties covered under Section 40A(2)(b) of the Act including the job work charges, purchases of services, etc. 7 The assessee, being dissatisfied with the order passed by the CIT-3, Ahmedabad under Section 263 of the Act, preferred an appeal before the Appellate Tribunal. The Appellate Tribunal vide its order dated 12th December 2019 partly allowed the appeal. 8 The Revenue, being dissatisfied with the impugned order passed by the Tribunal has come up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 012. The relevant extract of the letter is reproduced as under: "9. The details of addition to fixed assets i.e. description of asset, date put to use and value of the asset is already given in Annexure-3A to the audit report under form 3CD." 9.2 We also find that the assessee in response to the above notice has also filed the details of the assets for each block of assets which are placed on pages 141 to 149 of the paper book. Thus after perusal of the details of the fixed assets which were available before the AO during the assessment proceedings, we find that the AO after due application of mind framed the assessment under section 143(3) of the Act. 9.3 Similarly, we note regarding the proceeds from deposits and cash credit i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the paper book as well as confirmations which are placed on 178 to 199 of the paper book. 9.5 Similarly, we note, regarding the transactions covered under section 40A(2)(b) of the Act assessee in response to the queries raised in the course of hearing has submitted vide letter dated 06/03/2013 that the transactions were carried out with the related parties at the prevailing market rate. "In the course of hearing certain queries are raised. They are explained as under: 1. As regards Section 40A(2)(b) the assessee has made purchases from NKIL, N.K. Roadways P. Ltd. and Tirupati Proteins P. Ltd. They are all at prevailing market rate. This may be verified from the purchase invoices from the said parties and thir parties produced for y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the required format relevant to AY 2010-11 is enclosed." 8. The details of unsecured loans in the required format relevant to AY 2010-11 is enclosed. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 13. The details of provision made relevant to AY 2010-11 is enclosed. 14. The list of creditors outstanding as on 31/03/2009 and 31/03/2010 are enclosed." 9.8 We also note that the assessee has filed the complete details of the parties and the accounts of the provisions which are placed on pages 150 to 167 of the paper book. 9.9 In view of the above, we hold that the assessment order was framed under section 143(3) of the Act after due verification by the AO. Accordingly, we are of the view that the order of the AO cannot be held as erroneous ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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