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TMI Blog2022 (4) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... T exercising his revision jurisdiction has set aside the assessment with a direction to the Assessing Officer to pass assessment order afresh. 2. The brief facts of the case are that the assessee is engaged in the business of manufacturing of lead ingots. The assessee during the year disclosed total income of Rs. 2,33,65,644/-. The Assessing Officer after examining the details relating to purchases of the raw material and sales of the assessee and after having gone through the accounts, accepted the net profit shown by the assessee @1.01%. However, he made some other additions which are not disputed before us. Thereafter, information was received by the PCIT from the DCIT, Kolkata that the assessee company had availed accommodation entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y. 2016- 17 was marginally lower than the net profit in preceding year. In response to the same, the assessee explained the reasons for fall in net profit ratio and being satisfied the Ld. AO accepted the return of income filed by the assessee. In support of the purchases of raw materials made from M/s. Dynamic Sales (India), we have filed copies of challans and purchases bills. The supplier is registered under VAT/CST. We have also filed copies of the VAT returns and VAT Audit Report. All the payment to the supplier has been made through banking channels. It is also submitted that admittedly the transactions with Dynamic Sales (India) are duly supported by bills and challans and all the payments are settled through banking channels ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see for rebuttal and Mr. Singh is produced for cross examination, his statement cannot be relied upon. In this regard, we refer to the decision of the Hon'ble Supreme Court in the case of CIT v Odeon Builders Pvt. Ltd. [2019] 110 taxmann.com 64 (SC) wherein the Hon'ble Court held that where assessee has submitted purchase bills, transportation bills, confirmed copy of accounts and VAT Registration of sellers as also their Income Tax Return and payment was made through cheques, impugned purchases could not be disallowed. In any case, the Ld. AO has passed the assessment order after examining the audited financial statements, accounting ratios reported in the tax audit report, trade payables vat returns and explanation for low net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty paid. The ld. counsel in this respect has submitted that the assessee has produced the evidence of the sales made by the assessee which could not have been possible without the purchases of the raw material and thereafter manufacturing of the goods. The ld. counsel has further submitted that the assessee duly maintained stock register, day to day register showing the ingress and egress of the products. That the same has not been disputed either by the Assessing Officer nor by the PCIT. The ld. counsel has submitted that without the purchases being made, the sales were not possible. He, therefore, has contended that the ld. PCIT has erred in exercising his jurisdiction u/s 263 of the Act. 4. On the other hand, the ld. DR has su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally low as compared to the earlier assessment year. The net profit rate shown by the assessee in the earlier assessment year was at @1.05% and for the assessment year under consideration was @1.01%. He has submitted that the Assessing Officer duly considered the submissions of the assessee for a marginal difference in the rate of profit for the current year as compared to earlier year and has accepted the returned profit of the assessee. However, the ld. AR has been fair enough to state that at the most in this case, the net profit rate could have been enhanced, but it was not fair on the part of the ld. PCIT to set aside the entire assessment order and thereby pushing the assessee in a fresh round of litigation. The ld. DR also could not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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