9911796707
TMI Blog2024 (3) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... ler and on various dates for amounting of rupees 74,67,186/ out of total purchase rupees 2,69,92,101/ and every transaction is below 20000/ as mentioned in the assessment order dated 04/12/2017 it is to submitted respectfully that the counsel of the assessee has produced books of accounts along with bill and vouchers and the same was verified by the AO on test check basis and not found any discrepancies in this issue during the proceedings of assessment in first time scrutiny. However, the required details of cash purchase were furnished before AO during the case proceedings but AO not considered it is to relevant to mention here that all the cash purchase is fully covered under rule 6DD(e)(ii) of the income tax rule assessee had purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the proceedings on the basis of such invalid notice are also invalid these principles laid down by Hon'ble Allahabad High court in the cases of CIT vs Rajesh Kumar Pandey -25 taxman.com 242 (Allahabad) and Hon'ble Patna High Court in case of Satish Kumar Kashri vs ITO 104 ITD 382 (Patna) similar principles also laid down in case of Bardhaman Co-op. Milk Products Union Ltd. Vs C.l.T Burdwan) in ITA No.310-31 l/Kol/2009 of "A" Bench, Kolkata, and Assam Bengal Carriers Vs CIT ITA No. 706/Kol/2013. Therefore, this assessment order should be hence void. 03. BECAUSE, 'AO' wrongly disallow the expenses of rupees 1,00,000/ and added to income of the assessee without discuss in the assessment order." 3. Brief facts of the case are that, ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account along with bills and vouchers and the same has been verified by the A.O on the test check basis and not found any discrepancy in the books of account of the assessee during the proceedings of assessment in first time scrutiny. The entire details of cash purchase were furnished before the A.O. during the second round of assessment after the order passed u/s 263 of the Act, but A.O. has not considered it to be relevant and made addition in mechanical manner. The Ld. Counsel further submitted that all the cash purchase are fully covered under Rule 6DD(e)(ii) of the Income Tax Rules. The Ld. Counsel for the Assessee relied on several judicial precedents. 6. Per contra, the Ld. Departmental Representative by relying on the orders of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proviso to Section 40A(3) of the Act and Rule 6DD(e) of the Rules is non satisfaction of the condition provided in CBDT Circular No.8 of 2016. In particular, non furnishing of a Certificate from a Veterinary Doctor. The proviso to Section 40A(3) of the Act seeks to exclude certain categories/classes of payments from its net in circumstances as prescribed. Section 2(33) of the Act defines "prescribed" means prescribed by the Rules. It does not include CBDT Circulars. It is a settled position in law that a Circular issued by the CBDT cannot impose additional condition to the Act and/or Rules adverse to an assessee. In UCO Bank v. CIT [1999] 237 ITR 889/104 Taxman 547 (SC), the Apex Court has observed "Also a circular cannot impose on the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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