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TMI Blog2021 (4) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... interest of justice, we restore this issue to the file of the Assessing Officer. The assessee is directed to furnish all evidences demonstrating that he has fulfilled the mandatory conditions for getting benefit of Rule 6DD of the Rules and the Assessing Officer is directed to examine the evidences and decide this issue afresh after giving reasonable and sufficient opportunity of being heard to the appellant. Appeal filed by the assessee allowed for statistical purposes. - ITA No. 3039/DEL/2013 - - - Dated:- 25-3-2021 - N. K. Billaiya , Member ( A ) And Suchitra Kamble , Member ( J ) For the Appellant : Premjit Singh , CA For the Respondents : Mahesh Thakur , Sr. DR ORDER Per N. K. Billaiya , Accountant Member This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals], Muzaffarnagar dated 05.03.2013 pertaining to Assessment Year 2009-10. 2. The grievances of the assessee read as under: 1. That the Ld. CIT(A) has exceeded his jurisdiction making addition that in respect of those issues which are not doubted by the Assessing Officer during the course; 2. On the facts and in the circumstances of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him to show cause as to why provisions of section 40A(3) not be invoked. 6. In his reply, the assessee submitted that Rule 6DD states that no disallowance under section 40A of the Act will be made and no payment shall be deemed to be the profits and gains of the business or profession under sub-section (3A) of section 40A of the Act where the payment or aggregate of the payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds ₹ 20,000/- in the cases and circumstances specified hereunder, namely: Where the payment is made for the purchase of- (i) agricultural or forest produce; or (ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or (iii) fish or fish products; or (iv) the products of horticulture or agriculture, to the cultivator, grower or producer of such articles, produce or products. 7. In light of the aforementioned provisions, it was strongly contended that no disallowance should be made on the facts of the case in hand. 8. After considering the aforementioned submissions, the first appellate authority directed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnover of ₹ 2,87,57,70,211/- during A.Y. 2009-10. It has been argued by the appellant that the case of M/s. A.L.M. Industries Ltd. Saharanpur could not be compared to appellant's case as the aforesaid concerned had huge turnover as against turnover declared by the appellant at ₹ 28,57,61,124/-. The AO in the remand report has mentioned that the comparison of the appellant's case to that of M/s. A.L.M. Industries Ltd. Saharanpur was actually not made but it was cited only to drive home the fact that even in cases of huge turnover of the assessee's line of trade GP rate declared was at 8% or even more. It is observed that the action of the AO in citing the case of M/s. A.L.M. Industries Ltd. Saharanpur and at the same time adopting GP rate at 2.50% is held as conservative estimate. The AO could have estimated GP at 8% or near to that figure. Consequently, the addition would have been even more than what the AO had estimated. However, it is observed that disallowance u/s. 40A(3) of the Act has ultimately resulted in increase in the income of the appellant. Since addition on account of cash purchases at ₹ 24,92,41,331/- have already been made u/s. 40A(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making the payments. 3. The Board after examination of the issue is of the view that any person, by whatever name called, who buys animals from the farmers, slaughters them and then sells the raw meat carcasses to the meat processing factories or to the traders/retail outlets would be considered as producer of livestock and meat. 4. The benefit of rule 6DD of the Income-tax Rules, 1952 (sic 1962) shall be available to the person referred to at para 3 above subject to furnishing of the following:-- (i) A declaration from the person receiving the payment that he is a producer of meat; (ii) A confirmation that the payment, otherwise than by an account payee cheque or account payee bank draft, was made on his insistence; and (iii) A further confirmation from a veterinary doctor certifying that the person specified in the certificate is a producer of meat and that slaughtering was done under his supervision. 15. Clauses 3 and 4 are very much relevant to the facts of the case in hand. It has been specifically mentioned that any person who buys animals from the farmers, slaughters them and then sells the raw meat carcasses to the meat processing factories or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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