TaxTMI 
TaxTMI 
2019 (12) TMI 979
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.... AR of the assessee submitted that ITA No759/PUN/2019 for A.Y. 2015-16 can be taken as the lead case to decide the issue regarding all these appeals. That as a matter of completeness, we take ITA No.759/PUN/2019 as the lead case for A.Y. 2015-16 wherein the principal facts are that search and seizure operation was conducted u/s 132 of the Act on 26.11.2014 in the Chandukaka Group of cases. Consequent to the search, the case was centralized with the Central Circle-1(1), Pune vide Pr.CIT-III, Pune's order number 2895, dated 13.02.2015. During the course of search and post search it was detected that the assessee had booked huge bogus purchases in form of purchases from Unregistered Dealers (in short 'URD). The Assessing Officer at para 6.1 of his order had issued summons u/s 131 of the Act to Principal Officers of Chandukaka Saraf & Company to attend and provide the details such as name, address, PAN, quanity and amount for gold purchased from the Unregistered Dealers. The Authorized representative of the assessee attended and submitted the URD purchase details. The names given by the assessee were searched on ITD system and it was found that number of persons don't even have PAN. Th....
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....or of Income Tax (Investigation) Unit II (1), Pune asking the details on various issues including details of URD purchases B Enquiries before the learned Assessing Officer 2 29th May 2016 Page No 01 to 06 of Paper Book for AY 2015-16 Notice issued by the learned AO asking the details of URD Purchases and Expenses debited to Profit and loss account 3 11th August 2016 Page No 07 to 08 of Paper Book for AY 2015-16 The learned AO issued further notice asking the details of gold purchases made from Unregistered Dealers (URD) in the specified format 4 26th September 2016 Page No 09 to 13 of Paper Book for AY 2015-16 Reply submitted by the appellant giving complete details of URD purchases made from AY 2009-10 to AY 2015-16 5 07th November 2016 Page No 14 to 15 of Paper Book for AY 2015-16 Letter issued by the learned AO informing that summons were issued to the parties from whom the appellant has made URD purchases and asked the appellant to explain status of the summons. 6 15th December 2016 Page No 16 to 17 of Paper Book for AY 2015-16 Letter issued by the learned AO aski....
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....anner conducted already by the Assessing Officer on that very issue on which 263 order was passed. Similarly, at para 14(B), the Tribunal observed that with regard to Explanation 2 of section 263 of the Act inserted by the Finance Act, 2015 w.e.f. 01.06.2015, the key words are (i) without making enquiries or (ii) verification which should have been made and (iii) allowing any relief without enquiring into the claim. On examination of each of these expressions, the Tribunal noted as per the facts on record of the case that a detailed verification regarding URD purchases have been conducted by the Assessing Officer and thereafter, he has decided to disallow 2% of those purchases. The Assessing Officer has passed the assessment order after conducting reasonable enquiries and therefore, in that case the Tribunal has held that the Ld. Pr.CIT has exceeded his jurisdiction in invoking revisional powers. The Ld. AR of the assessee further contended that it is not case that the entire relief has been granted by the Assessing Officer to the assessee rather he has disallowed 2% of URD purchases. Therefore, the newly inserted Explanation 2 to clause (b) of section 263 of the Act is not applica....
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....the Act and thereafter, order passed u/s 263 of the Act by the Ld. Pr.CIT is with regard to the core issue of URD purchases made by the assessee and according to the observations of Ld. Pr.CIT, there has been complete lack of application of mind and incorrect assumption of facts by the Assessing Officer. In this case, as demonstrated by the Ld. AR of the assessee and facts on record that with regard to the very issue of URD purchases detailed enquiry was conducted by the Assessing Officer and the entire trail of events find place in the Paper Book filed before us and has made part of the order in tabular form as appearing hereinabove or as appearing in the preceding paragraphs. The facts also reveals that 43 summons were issued by the Assessing Officer of which 19 summons were duly served to the concerned persons and out of those 19, 4 persons attended the hearing. The Assessing Officer after conducting these specific enquiries into the matter had disallowed 2% of such URD purchases. Therefore, these trail of events are complete evidence of the fact that it is not case of in-application of mind by the Assessing Officer nor also there is incorrect assumption of facts by the Assessin....