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TMI Blog2024 (12) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... hom sales are made are also the same parties for whom consignment sales are made. There is, however, no details of any commission receipt from such parties for whom consignment sales are made. Assessee has explained the non-charging of commission from such parties stating that such parties are small and petty agriculturalist belonging from unorganized trade and the assessee as a matter of routine had received material from such consignors at its premises to make sales on their behalf. We find from the list of sales produced to parties to whom such kind of sales are being made without charging commission, can not be considered as small and petty agriculturalist. AO and the CIT(A) that proper evidence of consignment sales were not produced be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st such suppressed sales. 3. Briefly stated, the facts of the case are that the assessee filed its return of Income on 30.11.2015 declaring an income of Rs. 13,71,270/. Return was selected for complete scrutiny assessment through CASS and accordingly, statutory notices were issued and served upon the assessee. 4. The assessee is in the business as a dealer of food grains and commission agent and has income from other sources. Copy of Audit report in Form 3CD was furnished during the assessment proceedings. On perusal of the same, the Assessing Officer noticed that sale of Rs. 36,86,36,834/- included consignment sale of Rs. 3,71,75,141/- and the assessee has not shown any commission income on the said consignment sale. 5. The assessee was as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated as undisclosed investment in purchases of agricultural products which were subsequently sold outside his books of account. 9. Now the Revenue is aggrieved and has come in appeal before us. 10. Before us, the ld. DR vehemently stated that the ld. CIT(A) erred in deleting the addition without realizing that such sales were already part of accounts and expenses fully claimed by the assessee as per audited accounts and granting further expense will be without any basis or rationale. 11. Per contra, the ld AR submitted that the rice during the year was purchased from agricultural marketing committees, wholesalers and the assessee had also sold rice on consignment basis received from small Kisans/Agriculturalists. The ld AR stated that the V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm since long. Detail of parties to whom consignment sale was made, was produced. 16. We have heard the rival submissions and have perused the relevant material on record. The assessee has before us filed a detailed list of parties to whom the sales were made during the year. The list includes names of parties for whom consignment sales are also made. We find that the parties to whom sales are made are also the same parties for whom consignment sales are made. There is, however, no details of any commission receipt from such parties for whom consignment sales are made. 17. We also note that the assessee has explained the non-charging of commission from such parties stating that such parties are small and petty agriculturalist belonging fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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