TaxTMI 
TaxTMI 
2026 (7) TMI 1496
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....1961 (hereinafter referred to as the 'Act'). Preceding the order dated 27.03.2023, the assessee had been assessed to tax for A.Y. 2017-18 vide assessment order dated 16.12.2019 passed under Section 147 read with Section 143(3) of the Act. That order became subject matter of proceedings under Section 263 of the Act. Vide his order dated 27.03.2022, the learned PCIT, NOIDA directed for a fresh assessment order to be passed after obtaining certificates of the Agriculture Produce Marketing Committee (APMC)/'Mandi Samiti', to certify the genuineness of Form 6R, relied by the assessee. 3. The appeal has been pressed on the following questions of law : "2. Whether the Ld. ITAT erred in law in holding that production of Form 6R and payment of Mandi Shulk/Vikas Shulk were sufficient to establish genuineness of cash purchases for the purpose of claiming benefit under Rule 6DD of the Income-tax Rules, 1962 ? 4. Whether the Ld. ITAT was justified in law in affirming the order of the Ld. CIT(A) without independently examining the deficiencies specifically pointed out by the Assessing Officer pursuant to the directions issued under Section 263 of the Income-tax Act, ....
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....it of the provisions of section 40A(3) of the Act, as the same were covered by Rule 6DD of the Income Tax Rules, 1962. Form 6R is issued by the appellant to the seller at the time of making purchase in Grain Mandis across UP. The appellant has claimed that Form 6R is given only to such persons who are cultivator producers/agriculturists. The appellant contends that purchases were duly entered into the Mandi Shulk Register maintained by the Mandi Samiti. Mandi Shulk Register is maintained for record of tax paid by the buyers in respect of transactions made by them in the Mandi premises. The entire purchases of paddy in the state of UP is governed by the UP Krishi Utpadan Mandi Adhiniyam, 1964 and UP Krishi Utpadan Niyamavali, 1965. In terms of the said Adhiniyam, no farmer can sell his agricultural produce other than for home consumption except in a Mandi Samiti Campus, if the said producer is located within 20 kms radius from the Mandi Samiti Campus. Similarly, no person can buy agricultural produce directly from any farmer and has to purchase the same at the Mandi Samiti Campus if the buyer is located within 20kms radius of the Mandi Samiti. For the said purpose ....
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....urther states that it is case of agricultural produce and on this no VAT TIN / or CST is applicable. The contentions of appellant are valid. 4.3.8. The appellant has submitted copy of certificate from Krishi Utpadan Mandi, Dadri which shows that the appellant has paid Rs. 44,51,031/- as Mandi Shulk @2% and Rs. 11,12,758/- as Vikash Shulk @0.5% of purchases made in APMC Mandi during the relevant year. By back calculation the figure figure of total purchase made by the appellant in relevant year from farmers in APMC Mandi comes to Rs. 22,25,51,560/-. The appellant has submitted that total purchase from farmers in APMC-Mandi for the year was Rs. 22,26,31,211.45. The minor difference in two figures could be on account of rounding off. The cash purchase of Rs. 12,12,46,867/- is part of above said total Mandi purchase of Rs. 22,26,31,211.45 which is supported by the certificate issued by Krishi Utpadan Mandi, Dadri which is a Government body and cannot be doubted. The certificate of Krishi Utpadan Mandi, Dadri is extracted below: Decision on Ground No. 4 & 5 In view of the above discussion and also in view of the facts and in law, the Ground No.4 of th....
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.... to make available any certificate as desired by the PCIT in his order passed under Section 263 of the Act, the revenue was not disabled from requiring the APMC to submit such certificates. 10. Second, in any case, the certificate of Form 6R is statutory proof of transaction made as prescribed by the law. In absence of any prima facie or genuine doubt as to the credibility of such Forms 6R, relied by the assessee, the direction of the PCIT may not be read to invalidate the statutory provision of the transaction performed by the assessee. Third, it has been objected, if at all the revenue was aggrieved by the second order of assessment dated 27.03.2023 - that it is not in accordance with the direction issued by the PCIT, the only remedy available to the revenue was to seek fresh revision on that count. Further, the revenue may never have been permitted to raise that issue by way of opposition offered to the grounds of appeal pressed by the assessee, against such second assessment order. 11. Having heard learned counsel for the parties and having perused the record, on the third issue, it has to be noted that under the Act, the revenue does not have a right of appeal against th....
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....uggested by the learned Senior Standing Counsel for the revenue), that course may have been permissible except after strict compliance of Section 250(4) read with Section 251(2) of the Act. Unless the revenue had pressed the issue before the Commissioner (Appeals) or it had been pointed to the Commissioner (Appeals) or it had considered it proper (of his own), that the order of the assessment needs enhancement of computation, that objection cannot sustain. In that regard, the occasion never arose before the Tribunal and it does not arise before this Court, to consider such possibilities of such course being adopted. 15. Therefore, we are of the firm view that in such facts, the only course that may have been open to the revenue would have been to seek a fresh revision of the second assessment order dated 27.03.2023. That was clearly not done. Therefore, the NFAC made no mistake in considering the only ground on which appeal had been pressed by the assessee, in the second round of litigation. Admittedly, those grounds had been dealt with by the Assessing Authority, wholly beyond the scope of the order passed by the PCIT under Section 263 of the Act. Hence, the appeal of the asses....