2020 (10) TMI 612

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....referred as to 'the Act') for Assessment Year 2014-15 whereby and whereunder the Ld. AO has directed to make a fresh assessment, de-novo upon making all necessary proper enquiries in respect of all relevant aspects as identified in the order impugned. 2. The assessee conducting trading business filed its return of income through electronic media on 07.10.2014 declaring total income at Rs. 95,29,040/- for assessment year under consideration which was finalized under Section 143(3) of the Act on 07.12.2016. It is relevant to mention that the assessee shown income from business or profession and capital gain. Such assessment order was finalized by making disallowance of Rs. 4,141/- under Section 14A of the Act and Rs. 1,20,866/- on account ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessee was not filed before the Ld. AO. Had there been Transfer Pricing Report in Form 3CEB was filed the case could have been referred to the TPO in terms of the CBDT instruction as mentioned hereinabove, as the case made out by the Revenue. Since Audit Report of the assessee was not filed the same was not examined during the assessment proceeding. 4. At the time of the hearing of the instant appeal the Ld. Representative appearing for the assessee submitted before us that the assessee is having two proprietary firms Anuj Enterprise and Anuj Synthetics engaged in the business of trading and manufacturing of Gray and finished fabrics. Since the amount in question was paid too from one to the other proprietorship of the assessee for p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....supports the order passed by the Ld. PCIT. 6. We have heard the respective parties, we have also perused the relevant materials available on record. Admittedly for some reason or the other the actual Audit Report of the assessee in Form 3CB-3CD was not made available before the Ld. AO and, thus, the fact of making payment of Rs. 33,29,62,451/- to the persons specified under Section 40A(2)(b) of the Act for purchase of gray as mentioned in the said Audit Report could not be considered. Consequentially the matter could not be referred to the Ld. TPO in terms of the CBDT instruction. Needless to mention that the AO has not considered the reason for scrutiny selection as per CASS and failed to conduct necessary enquiry for the reason as n....