TaxTMI 
TaxTMI 
2022 (7) TMI 1615
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....e files indicates that the tax effect involved therein is Rs. 13,65,776/- Rs. 38,42,781/- and Rs. 31,70,815/ -; assessment year wise, respectively as it is evident from the relevant column in form 36 thereof. That being the case, we quote the CBDT's latest circular dated 08/08/2019 prescribing minimum tax effect of Rs. 50,00,000/- in all of its appeals pending as well as to be filed, before the tribunal with retrospective effect. We thus decline the Revenue's instant three appeals for this precise reason. These ITA Nos. 06 to 08/PUN/2020 stand dismissed in very terms. 3. Next come assessee's five appeals 1778 to 1782/PUN/19 raising the following identical grounds - "1. The Ld CIT(A) erred in not appreciating that the Ld AO had passed the Assessment Order in haste without following the principles of natural justice and the impugned Assessment Order was to be cancelled. 2. The Ld CIT(A) erred in not appreciating that the Assessment Order was passed without issuing and serving a notice under section 143(2) after filing the return of income which had rendered the Assessment Order bad in law liable to be set aside. 3. The CIT(A) erred in not del....
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....78 61,332 80,522 95,538 86,181 8 Sales Qty (KG) Current Year 6,830 6,642 7,664 7,773 7,937 9 Wastage Qty(KG) 68,448 54,690 72,858 87,765 78,244 10 Wastage % 91% 89% 90% 92% 91% 11 Production % 9% 11% 10% 8% 9% 12 Addition by A.O. 2,031,158 2,651,333 5,134,740 12,745,439 11,057,673 From the above it is observed that the value of purchases as against sales is in the range of 20% in AY 2007-08, 2008-09 & 2009-10 whereas this ratio is around 25% in the Ay 2010-11 & AY 2011-12. Thus, the main expenses is on account of processing of raw material. Raw material is in form of solid cylinders of metal and out of such raw material. The appellant manufactures precision tools and it involves a lot of wastes. The waste is in form of fine particles and hardly of any use any more. In other words, there is not much scope of manipulation of purchases by debiting bogus purchase as main cost is processing cost and not purchase of raw material. Further, most of the clients of the appellant are reputed parties and the appellant is also involved in export of precision tools. The A....
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....ls, it produced/ manufactured products in its factory which are sold/supplied to the Govt, agencies such as Bhel, HAL, ECU etc. and Public sector undertakings as well such as L&T, Hero Honda Motors, Maruti Suzuki, Mars Forge, Kirloskar Brothers Ltd etc .. The AR of the appellant also argued that the Assessing Officer neither rejected its duly audited books of accounts nor did he found any discrepancies in the various books/registers, also the Assessing Officer did not find/ confiscate any excess cash in the appellant's office compound or in factory premises. 15.12 It is also evident from the material evidences on record that the appellant is an engineering company which manufactures certain products in the shape of rings. The appellant first purchases the raw materials in the form of steel rods of different thicknesses as per the requirement in the received order, then it cuts the rods as per requirement followed by blanking processes for which the pieces of rods are sent to the blanking specialists which are happened to be third parties who removes the internal metal part of the rods as wastages. Thus, it is a clear fact that without consuming the raw materials, appel....
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.... Revenue's views that such purchases were made from bogus parties. The Tribunal noted that the Assessing Officer had issued notice to all parties from whom such purchases were allegedly made. Such notices were returned unserved by the postal authorities with the remark that the address was incomplete. The inspector deputed by the Income-tax Department also could not find any of the parties available at the given addresses. The assessee was unable to produce any confirmation from any of the parties. Though the assessee had claimed to have made payment by account payee cheques, upon verification, it was found that the cheques were encashed by some other parties and not by the supposed sellers. 5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to 'he conclusion that the entire quantity of opening stock, purchases and the quantity manufactured during the year under consideration were sold by the assessee. Therefore, the purchases of the entire 1,02,514 metres of cloth ....