2010 (10) TMI 575

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....n all the connected appeals filed by the very same assessee for the assessment years 2000-01 to 2006-07, that is about the validity of the suo motu revisional order issued by the Commissioner of Income-tax under section 263 of the Income-tax Act, 1961. We have heard Sri T. M. Sreedharan, counsel appearing for the appellant-assessee and have gone through the orders of the Tribunal and that of the C....

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....s the assessment years 2005-06 and 2006-07 are concerned, the assessee did not make any payment of tax at source for the inward freight charges paid for goods purchased. Consequently, the Commissioner in exercise of the suo motu revisional power under section 263 directed the Assessing Officer to consider this matter also. The assessee filed appeals against the orders of the Commissioner issued....

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....ing Officer has not made any disallowance. Admittedly, the assessee was engaged in purchase of rice and the purchases are made against cash payments which attract section 40A(3) of the Act. In fact exemption available under rule 6DD(a) is only for purchase of agricultural produce and since rice is not an agricultural produce exemption is not available to the assessee and this is available for purc....

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....er the limit that attracts the provisions of section 40A(3) then such order is erroneous in law and pre- judicial to the interests of the Revenue because if the provisions were considered at the time of assessment, probably there would have been disallowance leading to demand of tax. In the circumstances, we are of the view that the Tribunal rightly upheld the order of the Commissioner issued unde....