| Question And Answer | |
|---|---|
| Subject: | Assessment u/sec. 143(3) |
| Category: | Income-Tax |
| Querist: | Manoj jain |
| Answered by: | Advocate Neelam Jadhav |
| Tags: | Assessment, parties not responded, purchases |
| Date: | April 7, 2022 |
During the course of assessment proceedings , for verification of Purchases called for information U/Sec. 133(6) from few parties at the flag end of assessment proceedings . Few parties responded and few not. Assessing Officer completed assessment by making addition of all purchases effected from these parties on the following grounds::
a. Parties have not responded therefore those are not genuine.
b. Parties who have responded have not provided full information and provided details of their PAN and Financials alongwith account extract of assessee and confirm the amount of purchases .
Whether action of Assessing Officer justified when
a. He has not provided the details of information collected by him to assessee.
b. It is not the case that his notice issued u/sec. 133(6) has not been serve to the parties
c. Parties who responded have not provided the information desired by AO but confirmed the tramscation.
d. Not rejected books of accounts which were audited
e. Accepted the sales disclosed by assesee.
Pl guide .
The assesssee is advised to file an appeal before the CIT(A) . The assessee should take the ground of natural justice .In appeal proceedings the assessee can try to get the conformation from the parties and produce the details . The assesssee can make an application under rule 46A for producing additional evidence . If the assessee is able to produce the quantity details of purchases and sales entire purchases cannot be added as income from undisclosed source only net profit can be estimated . Refer CIT v. Nikunj Eximp Enterprises (P.) Ltd. (2013) 216 Taxman 171 (Mag.) (2015) 372 ITR 619(Bom.)(HC), PCIT v. Rishabhdev Tachnocable Ltd. (2020) 424 ITR 338 / 187 DTR 473 (Bom.)(HC). PCIT v. Mohommad Haji Adam & Co (Bom.) (HC) www. itatonline.org, PCIT v. Paramshakti Distributors Pvt Ltd (Bom.) (HC) www.itatonline.org.(ITA No 1453 of 2017 dt 8-1-2020) PCIT v. Pinaki D. Panani (Bom.) (HC) www.itatonline.org