TaxTMI 
TaxTMI 
2024 (9) TMI 726
X X X X Extracts X X X X
X X X X Extracts X X X X
....uantum appeals for assessment years 2013-14 and 2015- 2016 whereas appeals in ITA No.1576 & 1578/Chny/2024 are penalty appeals for assessment years 2013-14 and 2015-2016. 1.2 First, we will take up quantum appeal in ITA No.1575/Chny/2024 for assessment year 2013-14 for adjudication wherein an assessment was framed by ld. Ld. Assessing Officer u/s. 143(3) r.w.s.147 of the Income Tax Act, 1961 (in short ''the Act''). The assessee has filed the following grounds of appeal which reads as under:- ''1. The order of the CIT(A) is erroneous and bad in law as the same is contrary to the facts of the case and provisions of the law. 2. The CIT(A) failed to see that the assessment order was passed without providing the appellant a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cts of the case are that the assessee is an individual and is involved in the wholesale broiler chicken business. The AO received information from the DDIT (INV), Unit-1(4), Pune regarding the assessee's purchase of cull birds from M/s Venkateshwara Hatcheries Pvt. Ltd. during the financial year 2011-12. This information prima facie become the basis of reasons to believe that the appellant has suppressed turnover thereby leading to escapement of total income taxable under the Act for the AY 2013-14. Accordingly, the AO recorded his reasons u/s 147, obtained necessary approvals from the competent authority and issued notice u/s 148 dated 25.03.2020. In response to the Notice u/s 148 of the Act, the assessee has filed the return of income....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pportunity to submit objections or explanations to the draft assessment of income, but no response was received within the stipulated time frame, Finally, assessment was completed under section 143(3) r.w.s.147 of the Act on 28.12.2018 at total income of Rs. 29,52,529/-, Based on the findings during the course of re-assessment proceedings, the AO initiated penalty proceedings u/s 271A for the failure to maintain books of accounts and penalty proceedings u/s 271(1)(c) for furnishing inaccurate particulars of income. Aggrieved with the enhanced assessment, the appellant has filed an appeal before the ld. CIT(A). 3. On further appeal, the ld. CIT(A) held as under:- ''On perusal of the assessment order, it transpires that the AO has....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... preferred an appeal before us. 4. Ld.Counsel for the assessee before us filed charts profit per kg of chicken purchased. Profit chart for the impugned years Assessment year 2013-2014. No. Particulars Value 1 Total purchase value Rs. 3,69,06,607/- 2 Kgms of chicken purchased 6,07,582.100 kgs 3 Cost per Kg of chicken purchased Rs. 60.74 4 Profit @0.50 per kg of chicken purchased Rs. 3,03,791/- Assessment year 2015-2016. No. Particulars Value 1 Total purchase value Rs. 3,31,07,327/- 2 Kgms of chicken purchased 5,39,762.700 kgs 3 Cost per Kg of chicken purchased Rs. 61.3 4 Profit @0.75 per kg of chicken purchased Rs. 4,04,822/- Profit chart....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ics), contravenes and leads to the inference that there is a logic on the part of the assessee in arriving at wholesale selling price. In response to this proposal, the assessee vide his reply dated 21/12/2018 has submitted a detailed reply explaining the nature of business, direct & indirect expenses details, how the retail price is fixed, how could they fix their wholesale selling price amidst cut throat competition in the field, etc. He has also submitted a chart wherein datewise retail shop selling price of chicken published in the newspaper during the financial year 2010-11. He has arrived gross margin around Rs. 3/- per kg and net profit around Rs. 0.50/- per kg. To verify the submissions of the assessee in regard to arriving at the n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....SC) 02. CIT vs. Neo Poly Pck (P) Ltd (2000)245 ITR 492 (Delhi) We, therefore following rule of consistency, direct the ld. Assessing Officer to take profit of Rs. 0.50 per kg for assessment year 2011-12 and Rs. 0.75 per kg for assessment year 2014-2015 as both assessment years are prior to assessment year 2015-2016. Therefore, the ld. Assessing Officer will re-compute the income keeping in mind the consequential relief, if any as prayed in the grounds of appeal. 7. Appeals of the assessee in ITA Nos.1575 & 1577/Chny/2024 for assessment years 2013-14 and 2015-2016 are partly allowed for statistical purpose. 8. Now, we take up penalty appeals in ITA Nos.1576 & 1578/Chny/2024 for assessment years 2013-14 and 2015-2016 for adj....