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TMI Blog2020 (1) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... s mind or has not made enquiry which he should have made, in our view, is without any factual basis. More so, when the selling dealer has responded to notice issued under section 133(6) by the Assessing Officer and has confirmed the sales made to the assessee PCIT has not expressed any opinion as to whether the entire purchase should have been disallowed or only profit element has to be added. He has again left the issue open for the decision by the Assessing Officer while directing him to make afresh assessment. When the Assessing Officer has already passed the assessment order after making necessary enquiry and applying his mind to the materials brought on record, it is not understood what more can be achieved by setting aside the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 37,32,250, from Shri Anoop Yogendra Jain (M/s Aadi Imoex) during the year under consideration who is affiliated to Shri Rajendra Jain Group. On the basis of such information, the Assessing Officer re-opened the assessment under section 147 of the Act. In the course of assessment proceedings, the Assessing Officer called upon the assessee to furnish various details to prove the purchases. Further, to verify the genuineness of purchases made from M/s Aadi Impex, the Assessing Officer issued notice under section 133(6) of the Act. After taking note of the information received and other material on record, the Assessing Officer was of the view that the assessee had not purchased the diamond from M/s. Aadi Impex, but has purchased them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, he proceeded to pass the impugned order under section 263 of the Act holding the assessment order to be erroneous and prejudicial to the interests of Revenue, as according to him, the Assessing Officer has passed such order without application of mind. Thus, ultimately, the learned PCIT set aside the assessment order with a direction to the Assessing Officer to assess the income of the assessee afresh after following due procedure. 3. The learned Authorised Representative submitted, in the course of assessment proceedings the Assessing Officer has specifically enquired into the purchase transaction with M/s Aadi Impex by calling upon the assessee to furnish the relevant documentary evidences. Additionally, the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roteins (supra) is totally irrelevant as the said decision is factually distinguishable and not applicable to the facts of assessee's case. Thus, he submitted, the order passed under section 263 of the Act should be quashed. In support of such contention, learned Authorised Representative relied upon the following decision:- i) Yogesh C. Lakkad v/s ITO, ITA no.2464-2466/Mum./2019, dated 16th August 2019; and 4. The learned Departmental Representative strongly relying upon the observations of learned PCIT submitted, the observations / conclusion of the Assessing Officer with regard to the non-genuine purchases is contradictory and conflicting. He submitted, once the Assessing Officer has treated the purchases as non-genuine, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving reason to believe that the purchases worth ₹ 37,32,250, claimed to have been made from Anoojj Yogendra Jain, is non-genuine. In the course of assessment proceedings, the Assessing Officer enquired into the aforesaid aspect by calling upon the assessee to furnish documentary evidence to prove the purchase of goods. As it transpires from the record, in response to the query raised by the Assessing Officer, the assessee furnished various documentary evidences such as stock register, re-sale identification statement, quantitative tally of purchases and sales, bank statement indicating payment to supplier/seller, etc. It is further evident, with an intention to independently verify the genuineness of the aforesaid purchases, the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said factual position, the observations of learned PCIT that the Assessing Officer has not applied his mind or has not made enquiry which he should have made, in our view, is without any factual basis. More so, when the selling dealer has responded to notice issued under section 133(6) by the Assessing Officer and has confirmed the sales made to the assessee. As regards the decision rendered in case of N.K. Proteins we must observe, in the facts of the said case, a search and seizure operation was conducted in the premises of the assessee and in the course of such search and seizure operation blank cheque books, bill books, letter heads in the name of various parties were found and seized. However, no such facts are involved in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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