TaxTMI 
TaxTMI 
2016 (7) TMI 668
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....come was determined at Rs. 14,00,230/- after giving effect to the order of the Tribunal. Thereafter on the basis of office records, gathered during the course of assessment proceedings u/s 143(3) r.w.s.153A of the Act, ld. Assessing Officer observed that month-wise details of purchases of colour chemicals were furnished by the ld. AR of assessee on 9.7.2006 showing that total purchases for Asst. Year 2004-05 stood at Rs. 3,34,33,991/- whereas in the audited accounts filed with the return of income of purchase of colour chemicals was shown at Rs. 2,86,74,195/-. Therefore, there was a difference of Rs. 47,59,796/- which the ld. Assessing Officer doubted as unaccounted purchases. Due to this difference in the figures notice u/s 148 of the Act was issued to the Assessee on 28th August, 2009 followed by notice u/s 142(1) of the Act on 9.4.2010. During the course of assessment proceedings u/s 143(3) r.w.s. 147 of the Act, ld. AR submitted that there was no unaccounted purchases but the difference of Rs. 47,59,796/- was only due to the adjustment of cenvat credit , discount, octroi and average of purchases which have all been accounted for in the regular books of account and furnished the....
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....do so. [2] On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer. [3] It is, therefore, prayed that the order of the CIT(A) may be set-side and that of Assessing Officer may be restored to the above extent. 6. Ld. DR submitted as follows :- 1. The Ld. CIT(A) did not appreciate the fact that during the course of assessment proceedings the assessee could not satisfactorily explain the issue of unaccounted purchase of colour chemicals. 2. The Ld. CIT(A) did not appreciate the fact that no satisfactory explanation has been furnished in as such as the evidence in respect of CENVAT availed for purchase but only produced a reconciliation between the purchase figures and the amount paid to the suppliers were furnished. 3. The Ld. CIT(A) did not appreciate the fact that in the absence of proof of CENVAT availed in support of its claim, the Department cannot rely upon the statement of reconciliation to prove the point that the purchase was transferred to CENVAT account and therefore, the purchase of colour chemicals to the extent of 47,59,796/- was not passed through the books ....
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....peal or a Cross Objection can support the order of CIT(A) on any of the grounds which have been decided against the respondent under this scope of raising a plea of maintainability of the appeal without filing an appeal is limited under rule 27 of the ITAT Rules. In other words if he succeeds on the plea raised under rule 27 of the ITAT rules then the impugned order of ld. CIT(A) will have full effect in so far as it is against the Revenue and therefore, if the plea raised by the assessee is accepted. As regards the validity of the reassessment proceedings u/s 143(3) r.w.s. 147 of the Act, then the effect of the same would be only to the extent that the appeal filed by the Revenue will be defeated. Therefore, going through the rule 27 of the ITAT Rules, we are of the view that the alternate plea of the respondent i.e. assessee can be adjudicated with regard to the validity of reassessment proceedings. 10. We observe that following notice was issued vide Annexure-A attached to the notice u/s 148 of the Act to the assessee on 28.8.2009 showing the reason for reopening of assessment proceedings:- ANNEXURE-A A search u/s. 132 of the Act was carried out in. the case of th....
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....ssment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or re-compute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: Provided further that the Assessing Offi....
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....139 of the Act or in response to a notice u/s 142(1) or 148 of the Act or to disclose fully and truly all material facts necessary for his assessment for that assessment year. The basic reason in the case of assessee for issuing of notice u/s 148 was that ld. Assessing Officer observed from the office records held with the department (which were obtained from assessee during assessment proceedings completed u/s 143(3) r.w.s. 153A of the Act) that the purchases as per audited financial statement was shown at Rs. 2,18,74,195/- whereas the month-wise details of purchases submitted by assessee during the course of assessment proceedings submitted on 19.7.2007 showed the purchases at Rs. 3,34,33,991/- and on the basis of these details ld. Assessing Officer was of the view that the difference of purchase i.e. Rs. 47,59,796/- (Rs.3,34,33,991/- - Rs. 2,86,74,195/-) is of unaccounted purchases. 13. Going through the Annexures -A annexed with the notice u/s 148 of the Act, issued by ld. Assessing Officer, we observe that the information has been gathered from the record held with the department which were submitted by assessee only during regular course of assessment proceedings u/s 143(3....