2022 (12) TMI 757

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....639(1), dated 30/03/2022 for the Assessment Year 2017-18. 2. Brief facts of the case are that the assessee is a firm, filed its return of income admitting a total income of Rs. 3,60,568/- from rice mill activity for the AY 2017-18. The case was selected for complete scrutiny under CASS to examine the low profit though sales turnover increased considerably for the year under consideration. Statutory notices u/s. 143(2) and 142(1) of the Act dated 5/9/2018 and 8/1/2019 respectively were issued and served on the assessee requiring information to be furnished. In response the assessee produced bank statements, audit reports and details of deposits before the Ld. AO. Considering the submissions made by the assessee, the Ld. AO observed that t....

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....law and facts in assuming jurisdiction U/s. 263 as there was no satisfaction of the dual conditions of "error" in the assessment order" coupled with 'prejudice to the interests of the Revenue' in the impugned assessment order dated 8/12/2019 U/s. 143(3) for the AY 2017-18. 2. On the facts and in the circumstances of the case and in law, the Ld. Pr. CIT erred in law and facts, in his observation that Ld. AO has not verified the sources for the cash deposits of Rs. 27,00,000/- in the demonetization period, whreas the appellant has produced before the Ld. AO the books of account, financial statements, stock registers showing purchase and sales details with quantities, VAT returns etc., to support the sources as generated from its regu....

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....sonable as per the industry standards. The Ld. AR also submitted that the sale from CMR milling is also disclosed in the financials and the sale of by-products such as rice and husk are also disclosed in the financial statements. The Ld. AR submitted that the Ld. AO verified all the books of account and on satisfying the same framed the assessment order. Per contra, the Ld. Departmental Representative relied on the order of the Ld. Pr. CIT. 5. We have heard both the sides and perused the material available on record and the orders of the lower authorities. We have also considered the written submissions made by the Ld. AR. We find merit in the contention of the Ld. AR that books of account and bank statements were uploaded during the ....