TaxTMI 
TaxTMI 
2026 (9) TMI 1305
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....lcoholic Liquor and had been granted Licence by the Excise Department of Uttar Pradesh Government for sale of Indian Made Foreign Liquor (IMFL) and Beer in the Districts of Sonbhadra, Bhadohi and Mirzapur of State of Uttar Pradesh. The assessee filed its return of income for the year under consideration on 02.11.2022, declaring a total income of Rs. 6,27,70,400/-. The case of the assessee was selected for scrutiny under Computer-Assisted Scrutiny Selection (CASS). The Assessing Officer (AO) noted that the total turnover shown by the assessee for the year under consideration was Rs. 2,97,62,22,434/-. On examination of the details available on record, the AO recorded the following observations: 1. Assessee did not furnish sales bills....
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....7/- declared by the assessee from the Gross Profit of Rs. 23,80,97,795/- worked out by the AO, added Rs. 15,69,55,268/- to the income of the assessee. The AO completed the assessment under section 143(3) read with section 144B of the Act, assessing the total income of the assessee at Rs. 21,97,25,670/-. 2.2 The AO also initiated penalty proceedings under sections 270A(9) and 272A(1)(d) of the Act, separately. 2.3 Aggrieved, the Assessee preferred an appeal before the NFAC, which allowed the appeal of the assessee and deleted the addition of Rs. 15,69,55,268/- made by the AO. 2.4 Now the Revenue has approached this Tribunal challenging the order of the NFAC, by raising the following grounds of appeal: 1. Whether on the fact....
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....bmit all the necessary documents evidencing the purchases and sales of the liquor before the AO. He referred to pages 6 and 7 of the assessment order and submitted that the assessee had not furnished Sales Bills, Sales Registers, Stock Registers, etc. during the course of assessment proceedings and had further failed to furnish item-wise, month-wise, quantity-wise and amount-wise details of stock. It was further submitted that the assessee had not furnished the details and evidences relating to expenditure and even complete details of creditors and debtors were not submitted before the AO. It was submitted that, therefore, it was apparent that there were only part compliance by the assessee before the AO and, therefore, the AO had rightly r....
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.... the AO during the course of assessment proceedings. It was submitted that, thus, it was apparent that the AO had failed to give due consideration to these documents and had simply observed in the assessment order that no documents were furnished by the assessee. The Ld. A.R. also submitted that these documents were again submitted before the Ld. First Appellate Authority during the course of first appellate proceedings and it was only based on these replies filed before the AO that the Ld. First Appellate Authority had reached the conclusion that the books of account were wrongly rejected and the addition made by the AO by applying the Gross Profit Rate of 8% needed to be deleted. The Ld. A.R. also submitted that the AO, after rejecting th....
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....purchase liquor from various Distilleries which is also subjected to TCS and is, therefore, verifiable from Form 26AS of the assessee. Further, the sale of liquor is also being carried out to other wholesalers after deduction of TCS @ 1% in terms of section 206C of the Act. A perusal of various documents and evidences submitted during the course of assessment proceedings (and filed before us with due certification in the form of paper book by the assessee) shows that in response to various Notices issued by the AO, the assessee had furnished copies of Ledger Accounts pertaining to expenditure, Copy of Licence, Copies of purchase Invoices, Copies of Sales Invoices, Summary of the entire Cash Book and Petty Cash Book for the year under consid....