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TMI Blog2024 (9) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 and 2015- 2016 whereas appeals in ITA No.1576 & 1578/Chny/2024 are penalty appeals for assessment years 2013-14 and 2015-2016. 1.2 First, we will take up quantum appeal in ITA No.1575/Chny/2024 for assessment year 2013-14 for adjudication wherein an assessment was framed by ld. Ld. Assessing Officer u/s. 143(3) r.w.s.147 of the Income Tax Act, 1961 (in short ''the Act''). The assessee has filed the following grounds of appeal which reads as under:- ''1. The order of the CIT(A) is erroneous and bad in law as the same is contrary to the facts of the case and provisions of the law. 2. The CIT(A) failed to see that the assessment order was passed without providing the appellant a reasonable opportunity to be heard. MERITS: 3. The CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business. The AO received information from the DDIT (INV), Unit-1(4), Pune regarding the assessee's purchase of cull birds from M/s Venkateshwara Hatcheries Pvt. Ltd. during the financial year 2011-12. This information prima facie become the basis of reasons to believe that the appellant has suppressed turnover thereby leading to escapement of total income taxable under the Act for the AY 2013-14. Accordingly, the AO recorded his reasons u/s 147, obtained necessary approvals from the competent authority and issued notice u/s 148 dated 25.03.2020. In response to the Notice u/s 148 of the Act, the assessee has filed the return of income for the AY 2013-14 on 30.11.2020 admitting gross total income of Rs. 3,03,791/- During the course of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived within the stipulated time frame, Finally, assessment was completed under section 143(3) r.w.s.147 of the Act on 28.12.2018 at total income of Rs. 29,52,529/-, Based on the findings during the course of re-assessment proceedings, the AO initiated penalty proceedings u/s 271A for the failure to maintain books of accounts and penalty proceedings u/s 271(1)(c) for furnishing inaccurate particulars of income. Aggrieved with the enhanced assessment, the appellant has filed an appeal before the ld. CIT(A). 3. On further appeal, the ld. CIT(A) held as under:- ''On perusal of the assessment order, it transpires that the AO has considered these grievances raised before him. The appellant did submit before the AO that he purchased 6,07,582 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chased. Profit chart for the impugned years Assessment year 2013-2014. No. Particulars Value 1 Total purchase value Rs. 3,69,06,607/- 2 Kgms of chicken purchased 6,07,582.100 kgs 3 Cost per Kg of chicken purchased Rs. 60.74 4 Profit @0.50 per kg of chicken purchased Rs. 3,03,791/- Assessment year 2015-2016. No. Particulars Value 1 Total purchase value Rs. 3,31,07,327/- 2 Kgms of chicken purchased 5,39,762.700 kgs 3 Cost per Kg of chicken purchased Rs. 61.3 4 Profit @0.75 per kg of chicken purchased Rs. 4,04,822/- Profit chart for the subsequent years. A.Y Kgms of Chicken purchased Net Profit Profit per kg admitted by the appellant 2016-17 5,09,707.800 5,11,814 1.00 2017-18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detailed reply explaining the nature of business, direct & indirect expenses details, how the retail price is fixed, how could they fix their wholesale selling price amidst cut throat competition in the field, etc. He has also submitted a chart wherein datewise retail shop selling price of chicken published in the newspaper during the financial year 2010-11. He has arrived gross margin around Rs. 3/- per kg and net profit around Rs. 0.50/- per kg. To verify the submissions of the assessee in regard to arriving at the net profit, the Inspector was deputed to visit the shop and submit a report. The Inspector vide his report dated 26/12/2018 has explained in detail how this business is going on and the expected margin. He has reported the reta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014-2015 as both assessment years are prior to assessment year 2015-2016. Therefore, the ld. Assessing Officer will re-compute the income keeping in mind the consequential relief, if any as prayed in the grounds of appeal. 7. Appeals of the assessee in ITA Nos.1575 & 1577/Chny/2024 for assessment years 2013-14 and 2015-2016 are partly allowed for statistical purpose. 8. Now, we take up penalty appeals in ITA Nos.1576 & 1578/Chny/2024 for assessment years 2013-14 and 2015-2016 for adjudication:- Consequent upon the quantum order (referred supra), penalty proceedings were initiated against the assessee in the assessment order. The assessee defended the same by submitting that the additions were estimated addition without reference to regu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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