TaxTMI 
TaxTMI 
2023 (8) TMI 955
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....of the Act. 3. Subsequently, the said order u/s. 143(3) of the Act was set aside by the Principal CIT by exercising the Revisionary Powers u/s. 263 of the Act with the direction to the Assessing Officer to examine the issue of low profit by calling the details of purchases, packing material charges, processing and freezing charges, addition to sundry creditors, advances from customers etc. The ld. PCIT also directed the Assessing Officer to examine why opening and closing stocks are "NIL" and why there is sharp fall in net and gross profit rate and after examination of such details and enquiries and giving opportunity to the Assessee of being heard, decide the issue on merits as per law. 4. The Assessing Officer in compliance to the order dated 10.01.2018 passed u/s. 263 of the Act, initiated the proceedings u/s. 143(3) read with section 263 of the Act and asked the Assessee to produce the details of meat and live buffalo purchased during the F.Y. 2014-15, purchase ledger, bills and vouchers. In response, the Assessee produced the list of 65 suppliers amounting to Rs. 1,91,34,04,464/- along with the RTGS details of the money paid to suppliers. The Assessee also produced some self....
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....d purchase invoices there is another connecting issue whereby despite being given several opportunities, the assessee failed to submit name, address and PAN of many of the seller parties. To be precise out of a total 65 supplier parties, assessee couldn't produce such details of about 36 parties and therefore failed to prove genuineness of such purchases. iii. The point of questionable purchases is also visible in the details called on sundry creditors where reply for only 5 creditors out of 26 against a notice u/s 133(6) was received. iv. It may also be mentioned that wherever addresses of seller parties and sundry creditors were available , letters u/s 133(6) were sent but most of these letters returned unserved. Some letters were served but surprisingly replies were received in very few cases. v. In similar manner verification were also done by issuing letters u/s 133(6) to parties mentioned under the head "processing and freezing charges" and "packaging material charges" but these letters were either not served or no replies were received." 4.1 The Assessing Officer consequently rejected the book results of the Assessee on the ground that the Assessee failed to g....
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....f purchases containing the addresses and PANs of 55 suppliers out of total 65 suppliers were also provided. The Assessing Officer, in response to the notices sent u/s. 133(6) to 26 sundry creditors and to 29 meat suppliers, received reply directly from five sundry creditors and seven suppliers, in which no ambiguity was pointed out by the Assessing Officer. It is a matter of fact that the payment to the suppliers made through banking channel and the same is submitted with complete details of payment, the details produced before the Assessing Officer in the format as suggested by him. As the Assessee submitted all the requisite information, explanation and documents during the assessment proceedings, as the same is also discussed in para No. 15, but still the Assessing Officer ignored all the submissions made by the Assessee qua purchases and wrongly declared the purchases made from fake parties only on account of that the notices sent u/s. 133(6) were either returned un- complied or did not reply. Even though the major group of suppliers of packing material was also produced before the Assessing Officer in order to substantiate the payment made to the suppliers qua packing material....
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....or confirmation, but most of which also returned as un- complied with the comments like "left", "no such person" etc. Further, in order to verify the outstanding sundry creditors, the Assessing Officer also issued notices u/s. 133(6) of the Act to such sundry creditors, however only five sundry creditors replied out of 26 suppliers and rest were either un-complied or no reply was received from them. Further out of total 65 supplier parties, the Assessee could not produce the details of about 36 parties and the Assessee also failed to answer specific query as to how the goods were received without any invoice which the Assessee has claimed as a common practice. The Assessing Officer categorically held that the purchases and payments are not possible without purchase invoices. The Assessee also failed to submit any weighing bridge vouchers issued to every supplier. Therefore, the Assessing Officer raised the issue if seller of meat sells it without any invoices and is only partly paid, then how will the party know what the balance payment is without there being any sale vouchers. Though we are in agreement with the contention of the ld. AR that the Assessing Officer has not pointed o....