TMI Blog2023 (11) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... kenly mentioned granule work , when the fact is that his explanation was patently obvious from the data revealed in the financial statements of the assessee itself. Even otherwise, assessee has demonstrated before us that the Assessing Officer had appreciated the nature of income and expenses incurred by the assessee correctly and noted that the assessee had earned income from job work charges and not paid any expenses on account of the same. As obvious records with the AO, which included the financial statements of the assessee more particularly the Profit and Loss Account as noted by us above along with its schedules, the purchase books of the assessee, the ledger of purchases, the copy of job work account, the copy of account of Anand Synthetic - all revealed the fact that the assessee had not incurred any expenses on account of job work; that the expenses incurred in relation to Anand Synthetic, noted by the ld. PCIT, was in relation to purchase of granules and not for any job work and in fact the assessee had earned job work income from M/s. Anand Synthetic. The facts coming out so clearly from the records, PCIT surely was misguided by the incorrect words used by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... error of AO has resulted in loss of revenue particularly when the expense related to purchase of granules and hence was not liable for deduction of tax at source. 5. The ld. PCIT has further erred in law and on facts in not appreciating that the view taken by the AO is a possible view and hence the proceedings are illegal and bad in law. 6. The ld. PCIT has further erred in law in not coming to any concrete conclusion and without conducting any inquiry or investigating the issue, merely directed the AO to frame the assessment order afresh. Without there being any positive finding about order being erroneous and prejudicial to the interest of the revenue, the action of the ld. PCIT is without jurisdiction and illegal and hence deserves to be deleted. 7. Ld. PCIT has erred in not considering various facts, submissions, explanations and clarifications as given by the appellant and further erred in not appreciating the facts and law in their proper perspective. 3. A perusal of the order passed by the learned PCIT reveals that the error noted by him in the order passed by the Assessing Officer so as to assume revisionary jurisdiction, was non-examination of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in this regard at paragraph No. 4.1 of the order are as under:- 4.1 The reply filed by the assessee has been perused. Assessee has stated that it had paid 86,55,661/- to the partnership firm on account of purchase of Granules from it. However, the assessee has not furnished any bills or invoices which could substantiate that the said transaction pertained to purchase of Granules and not of any job work. No qualitative or quantitative details of Granules claimed to have been purchased from the partnership firm was furnished by the assessee in his reply. Further, assessee has not submitted details as to when and where such granules, claimed to have been purchased from the firm, were delivered along with relevant details of delivery like name and address of the transporter, vehicle number etc. The assessee has simply stated that he has paid Sales Tax and VAT on the aforesaid purchase, but even then no evidence regarding the same was furnished by the assessee while furnishing his reply dated 25/02/2021. The Assessee has only furnished ledger account of M/s. Anand Synthetics in the books of Suresh Synthetics of which assessee is Proprietor. This ledger account is a self serving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and manufacturing expenses are debited. The manufacturing expenses at Schedule P-8, which is at paper-book page no. 24, was scrutinized by us and we found that there were no job work expenses debited in it. The maximum that we found debited to the said account related to some work done classified as labor charges and the amount debited is only Rs. 1000/-. The remaining expenses debited in the manufacturing expenses account related to power, oil, salary, workers wages and discount and other expenses. Besides, the assessee has debited raw-material consumption expenses, schedule of which at P-4, shows only raw-material consumption and no job work expenses debited to it. 9. The Annual Accounts of the assessee therefore clearly reveal that the assessee has not incurred any expenses of the nature of job work charges. On the contrary, the schedule of sales, P-1, at paper-book page no. 23, reveals that the assessee has earned income from job work to the tune of Rs. 47,21,424/-. Even otherwise, we have noted that the total manufacturing expenses incurred by the assessee during the year, which ought to have included the job work expenses if any incurred by the assessee, was to the tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were filed by the assessee along with the purchase books reflecting purchase of granules therein. Our attention was also drawn to the fact that the assessee had also furnished the copy of account of M/s. Anand Synthetic to the Assessing Officer during the assessment proceedings which revealed the fact that the assessee had purchased granules from Anand Synthetic during the year and had done job work for Anand Synthetic also. 13. It is obvious from the above ,that the records with the Assessing Officer, which included the financial statements of the assessee more particularly the Profit and Loss Account as noted by us above along with its schedules, the purchase books of the assessee, the ledger of purchases, the copy of job work account, the copy of account of Anand Synthetic - all revealed the fact that the assessee had not incurred any expenses on account of job work; that the expenses incurred in relation to Anand Synthetic, noted by the ld. PCIT, was in relation to purchase of granules and not for any job work and in fact the assessee had earned job work income from M/s. Anand Synthetic. The facts coming out so clearly from the records, the ld. PCIT surely was misguided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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