TaxTMI 
TaxTMI 
2022 (4) TMI 541
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....d to as the 'Act') whereby the ld. PCIT exercising his revision jurisdiction has set aside the assessment with a direction to the Assessing Officer to pass assessment order afresh. 2. The brief facts of the case are that the assessee is engaged in the business of manufacturing of lead ingots. The assessee during the year disclosed total income of Rs. 2,33,65,644/-. The Assessing Officer after examining the details relating to purchases of the raw material and sales of the assessee and after having gone through the accounts, accepted the net profit shown by the assessee @1.01%. However, he made some other additions which are not disputed before us. Thereafter, information was received by the PCIT from the DCIT, Kolkata that the assesse....
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.... Returns, The Ld. A.O. also noted that Net Profit ratio of the assessee company for the A.Y. 2016- 17 was marginally lower than the net profit in preceding year. In response to the same, the assessee explained the reasons for fall in net profit ratio and being satisfied the Ld. AO accepted the return of income filed by the assessee. In support of the purchases of raw materials made from M/s. Dynamic Sales (India), we have filed copies of challans and purchases bills. The supplier is registered under VAT/CST. We have also filed copies of the VAT returns and VAT Audit Report. All the payment to the supplier has been made through banking channels. It is also submitted that admittedly the transactions with Dynamic Sal....
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....nference on the basis of Shri Singh may be made. Moreover, unless a cop. of the statement of Mr. Singh is made available to the assessee for rebuttal and Mr. Singh is produced for cross examination, his statement cannot be relied upon. In this regard, we refer to the decision of the Hon'ble Supreme Court in the case of CIT v Odeon Builders Pvt. Ltd. [2019] 110 taxmann.com 64 (SC) wherein the Hon'ble Court held that where assessee has submitted purchase bills, transportation bills, confirmed copy of accounts and VAT Registration of sellers as also their Income Tax Return and payment was made through cheques, impugned purchases could not be disallowed. In any case, the Ld. AO has passed the assessment order after examining th....
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....ee furnished not only audited financial statements and tax audit report but also details of trade payable and copies of the VAT returns and details of excise duty paid. The ld. counsel in this respect has submitted that the assessee has produced the evidence of the sales made by the assessee which could not have been possible without the purchases of the raw material and thereafter manufacturing of the goods. The ld. counsel has further submitted that the assessee duly maintained stock register, day to day register showing the ingress and egress of the products. That the same has not been disputed either by the Assessing Officer nor by the PCIT. The ld. counsel has submitted that without the purchases being made, the sales were not possible....
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....rate. At this stage, the ld. counsel for the assessee has submitted that the net profit shown by the assessee for the year under consideration was marginally low as compared to the earlier assessment year. The net profit rate shown by the assessee in the earlier assessment year was at @1.05% and for the assessment year under consideration was @1.01%. He has submitted that the Assessing Officer duly considered the submissions of the assessee for a marginal difference in the rate of profit for the current year as compared to earlier year and has accepted the returned profit of the assessee. However, the ld. AR has been fair enough to state that at the most in this case, the net profit rate could have been enhanced, but it was not fair on t....