TaxTMI 
TaxTMI 
2025 (1) TMI 1400
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....on of taxable income: Sl. No. Description Amount (in INR) 1 Income as per return of income file 1,39,49,220/- 2 Income as computed u/s 143(1)(a) 1,39,49,220/- 3 Variation in respect of issue as per para at 4.5 1,64,11,510/- 4 Total income/Loss determined as per the above proposal 3,03,60,730/- 6. Assessee at income of Rs. 3,03,60,730/- under section 143(3) r.w.s. 144B of the Income Tax Act. Penalty proceedings u/s 270A for under reporting of income issued separately. Computation of income and demand notice u/s 156 of the Act is attached." 2. As is available from the assessment order, the case of the assessee was selected for scrutiny under CASS due to the following reasons:- "A. High income reported in the return and no entry in Schedule Assets and Liabilities of return of income. B. Substantial loans given by the assessee as per Form 3CD of debtors in comparison to gross total income shown in the ITR. C. Large squared up loans during the years." 3. Learned Assessing Officer, while computing taxable income of the assessee and framing the assessment order observed in the manner as:- "The ....
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....n record. The loss in weight, quality etc after the sales is surprising as the buyer inspects the goods before and decides the rates accordingly or can buy from the other parties or can bargain at the point of purchases. Assessee has brought on record the fact of non availability of many debit notes which again leads to the fact of deficiency in supportive evidence. Therefore the claim of discount is also not fully supported by evidence and not reliable due to above discussion. In respect of commission/ brokerage for Rs. 7,77,060/-, the assessee has not given any copy of agreement and proof of services rendered with nexus Instead the bills from the brokers without proving nexus to the particular sales. In case of Shekhawat Cotton suppliers bill dated 31.03.2022 the assessee has paid the major commission of Rs. 5.22.170/- out of total brokerage of Rs. 7,77,060/- at the rate of 15% on purchase and 25% on sales which is very much on the higher side and demolishes the defense of the assessee stating that the commission amount is reasonable at 0.20%. It is to be noticed that even the profit margin of the assessee is only 5.5% as against the commission of 25% given by assessee o....
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....d DR for the applicant is that the office was busy in handling cases because of amendments effective from 1.9.2024, in addition to the matters in which limitation was going to expire. Further, it has been submitted that it being festivity period due to Independence Day and Raksha Bandhan and holiday period too, with Saturday and Sunday also falling, most of the staff from out stations happened to be on leave w.e.f. 14.8.2024 and returned on 20.8.2024. Ultimately, Learned DR has submitted that due to the abovesaid sufficient grounds, short delay of 4 days in filing of appeal may be condoned. In response, learned AR for the assessee has not opposed the submission put forth by Learned DR on the point of condonation of delay. Having regard to the submissions put forth by Learned DR, we find it to be a fit case to condone the short delay of 4 days which has crept in filing of the appeal by the department. Arguments have also been advanced by Learned DR for the appellant and Learned AR for the assessee, in the appeal today itself. File perused. 7. Ld. DR for the appellant-department has advanced only one contention that the case was selected for "complete scrutiny" and ....
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....information in the Schedule pertaining to the Assets and Liabilities, in the course of Ld. AR for the assessee admits that due to high income reported in the return, the assessee was required to submit assets and liabilities schedule, but the assessee did not submit the same. It is not being disputed on behalf of the assessee that such information of assets and liabilities is required to be furnished where total income of the assessee exceeds of Rs. 50, 00,000/-. Such information requires detailed enquiry. In view of this first reason, the Assessing Officer was competent to scrutinize the case not by way of limited scrutiny, but as a complete scrutiny case. As regards, second reason given in selecting the case for scrutiny, it was found that the assessee had lent huge sum by way of loans as per Form 3CD of debtors, in comparison to the gross total income shown in ITR. Accordingly, when genuineness of loan transactions and sources of loan was to be verified, it cannot be said that the case was selected for limited scrutiny. So far as third reason in selecting the case for scrutiny is concerned, as per tax audit report, substantial amount of loans was squared up by the as....