TaxTMI 
TaxTMI 
2019 (1) TMI 1360
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.... of manufacturing and processing of frozen boneless buffalo meat and other similar products. For the purpose of such business, the Assessee procures raw meat from various suppliers one of them is M/s. S.N. Enterprise; (b) For the Assessment Year 2010-11, Petitioner had filed a return of income on 28th September, 2010, declaring total income of Rs. 138.70 Crores. Such return was taken in scrutiny by Assessing Officer. After detailed scrutiny, he passed an order of assessment under Section 143(3) of the Income Tax Act, 1961 (for short "the Act"). On 5th March, 2013, assessing total income at Rs. 138.82 Crores. To reopen said assessment, the Assessing Officer issued impugned reopening notice. In order to do so, he had recorded following rea....
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....td. are inflated. This inference is drawn as the ultimate purchaser is M/s. Frigerio Conservra Allana Ltd. Therefore, there is under assessment of income on account of inflated purchases. The assessment for A.Y 2010-11 was completed u/s. 143(3) on 5.3.2013 determining total income at Rs. 138,70,88,898/. The issue of genuineness of purchase of buffaloes from M/s S N Enterprises was not examined by the Assessing Officer during the course of assessment proceedings. Nor has the assessee furnished any material facts in this regard. Therefore no opinion was formed as to genuineness of transaction of transfer of Rs. 90,00,000 on 29.12.2009. In this factum, it cannot be said that there is change of opinion. There....
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....ing Officer doubts, was subject matter of examination in case of said M/s. S. N. Enterprises. The Assessing Officer passed order of assessment on 23rd December, 2017 under Sections 143 (3) read with 147 of the Act, in which, such payments made by the Petitioner-Assessee were accepted. 4. On the other hand, learned Counsel for the Revenue opposed the Petition contending that, there was failure on the part of the assessee to disclose truly and fully all materials facts. The Assessing Officer had received information from the Investigation Wing. Being prima facie, satisfied that the payments made to said M/s. S.N. Enterprises by the Petitioner, were not genuine, the Assessing Officer, therefore, reopened the assessment by recording proper r....
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....nk transfers and that,M/s. S N Enterprises in turn, withdraw a sizeable amount from said payments in order to make cash payments to farmers - owners of buffalo. This information by itself, cannot ultimately lead to the inference that, said payment was for non-genuine expenditure. Merely because M/s. S N Enterprises made cash payments for purchase of buffalos, would not destroy genuineness of the expenditure made by the assessee. There had to be some additional material which would establish the live-link for the formation of belief by the Assessing Officer that, income chargeable to tax has escaped assessment. The Assessing Officer in the present case, neither had time to carry out any follow up enquiries nor had he, in fact, carried out an....
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....(Annexure1). Party-wise details of suppliers of goods (Annexure14)." 10. The said reply contained ledger details of purchase made by the Assessee from various suppliers, which include the following information: S. N. Enterprises H.N.162, Mohalla Uncha Tarinan, Khurja, Bulandsahar, Uttar Pradesh 80,53,27,277 Once again, on 28th February, 2013, assessee wrote a letter to the Assessing Officer, which reads as under: "In the course of hearings, your goodself have pointed out that in response to the notice for cross verification of transactions u/s. 133(6) parties have sent replies. Therefore, as required we enclose the copy of ledger accounts as appearing in our books in case of those parties (Annexure1): (i) Akth....