Nanak Chand & Co. , U.P V. Pr. Cit, Gzbd

ITA 904/DEL/2022

AI Insights

The case revolves around an appeal by Nanak Chand & Co. against the revisional order of the Principal Commissioner of Income Tax, Ghaziabad, which was dated 15.03.2022. The revisional order was based on an earlier assessment order under Section 143(3) of the Income Tax Act, 1961, dated 28.06.2019, for the Assessment Year 2017-18, which the Pr. CIT deemed erroneous and prejudicial to the interest of the revenue under Section 263 of the Act. The primary issues raised included unexplained cash deposits during the demonetization period and a significant drop in the Gross Profit (GP) and Net Profit (NP) ratios compared to previous years. The ITAT, after reviewing the submissions and evidence, concluded that the original assessment was conducted with adequate inquiry and the explanations provided by the assessee were satisfactory, thus setting aside the revisional order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121625 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 22-08-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 03-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 263; 63; 201; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.904/DEL/2022 Assessment Year 2017-18 Nanak Chand & Co. 5, Nai Mandi, Bulandshahr. U.P. Vs. Principal Commissioner of Income Tax, Ghaziabad. TAN/PAN: AAMFN7290D (Appellant) (Respondent) Appellant by: Shri S.K. Goyal, CA Shri Varun Gupta, CA Respondent by: Shri Subhra Jyoti Chakraborty, CIT-DR Date of hearing: 23 08 2023 Date of pronouncement: 30 08 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The capti oned appeal has been f il ed at t he i nst ance of t he assessee against t he r evi sional or der of t he l d. Pri nci pal Co mmi ssi oner of Inco me Tax, G haziaba d ( ‘Pr. CIT’ i n s hort ) dat ed 15. 03. 202 2 wher ei n or der pas sed b y t he Assessing Offi ce r (AO) under Sect i on 143( 3) of t he Inc o me Tax Act, 1961 (t he Act ) dat ed 28. 06. 2019 c oncer ni ng AY 2017-1 8 was held t o be er roneous in so far as pr ej udi ci al to the i nterest of the revenue wi t hin t he mea ning of Sect io n 263 of the Act . 2. The gr ounds of appeal raised b y the assessee read as under: I.T.A. No.904/Del/2022 2 “ 1 . O n t h e f ac t s an d c i r c um s t an c e s o f t h e c as e , t h e r e v i s i o n o r d e r p as s e d u / s 2 63 d at e d 1 5. 0 3 . 20 2 2 b y P C I T , G h a zi a b a d in r e s pe c t o f A s s e s s m e n t O r de r d a t e d 2 8. 0 6 . 20 19 u / s 1 43 (3 ) p a s s e d by t h e I T O , W ar d - 2 ( 3 ) ( 3 ), B u l a n d s h a h a r , U P i s t ot a l l y w r on g , b ad i n l a w a n d n e e ds t o b e qu a s he d . 2 . Th at t he s ho w c a u s e n ot i c e h as b e e n i s s u e d i n r eg a r d to t h r e e i s s u e s m e n t i on e d as u n de r : a ) D e p o s i t o f s um o f R s . 35 , 1 0 , 0 0 0 / - i n t h e b a nk ac co u n t of t he a s s e s s e e o n 1 1. 1 1. 2 0 16 , b ) L ow r a t e of G P a n d N P a s c o m p a r e d t o p r e v i o us y ea r s c ) M e n t io n i ng t h a t i f in t e r e s t of R s . 1 , 8 7, 7 00 / - i s e x c l ud e d t h e n t he f i g ur e o f n e t pr o f i t w i l l b e ne g at i v e . T he as s e s s e e h a s f i l e d c om pl e t e d e t ai l s as k e d b y t he A s s e s s i ng O ff i c e r f r o m t i m e to t i m e a n d d e t a i l s f il e d by t he a s s e s s e e c o v e r e d a l l t he t h r e e i s s u e s . T h e c a s h w a s d e p o s i t e d o n 1 1 .1 1 . 2 01 6. T he a s s e s s e e w i t h d r e w s u m of R s . 1 8, 0 0 , 0 0 0/ - o n 0 3. 1 1 . 201 6 a n d ag a i n R s . 1 8 , 0 0 , 0 00 / - o n 07 . 11 . 2 01 6. T he a s s e s s e e e x p l a in ed t he s o u r c e of R s . 3 5 , 1 0 , 0 00 / - a n d o t he r d e t ai l s r e l a ti n g t o G P a nd N P e t c . E v e r y o f f i c e r h a s di f f e r e n t w a y o f w o r k i ng an d t h e A O w a s f ul l y s a t i s f i e d w i t h th e p a p e r s / e x pl a na t i on f i l e d by th e a s s e s s e e d ur i n g t he a s s e s s m e n t pr o c e e di n gs . A ny h ow , t h e as s e s s e e s h ou l d n o t s uf f e r f o r t h e ne g l ig e n c e o f th e A s s e s s i ng O f f i c e r . I t i s ag a in t he p r i n c i p l e of n a tu r a l j us t ic e . H e nc e , t h e or de r p a s s e d by t h e P C IT u/ s 2 6 3 c a nc e l l i n g t h e as s e s s m e n t i s t ot a l l y w r o n g, b ad i n l a w a n d n e e ds to b e q ua s h e d . 3 . Th at t h e or d e r p a s s e d u n de r S e c t i on 26 3 da t e d 1 5. 0 3 . 2 0 2 2 b y t he P C I T, G ha z i a b a d i s b ad , i l l e g a l a n d u nj u s t i fi e d o t h e m e r i t s o f t he c a s e a n d m u s t b e qu a s he d . ” 3. Br iefl y sate d, t he assessee e-fi l ed hi s i nco me tax ret ur n f or Assess ment Year 2017- 18 decl ari ng t axa ble inco me at Rs.1,75,930/- . T he r et urn f il ed was subj ect ed t o scr uti n y assess ment unde r Sect ion 143( 3) of the A ct w hereb y t he retur ned i nco me was assessed wit hout a n y mo dif icat ion. As per the assess ment or der, t he ret urn of assessee was sel ected under co mplet e scr uti n y wi th veri fi cati on of cash dep os its duri ng de monet i zati on per iod as centr al i ssue. 4. Aft er the c o mpl et ion of t he assessme nt , i n exerci se of the powers conf er red under Sect io n 263 of t he Act , the ca se recor ds I.T.A. No.904/Del/2022 3 of t he assessment so made wer e cal l ed b y t he Revisional Co mmi ssi oner (Pr .CI T, G haziabad). The P r. CIT observe d t hat the i mpu gned assess ment or der is er roneous i n so f ar as it is prejudicial t o t he i nterest of t he r evenue. A s how cause not ice dat ed 2 3.0 2.2 022 was i ssued t o t he assessee i n t hi s r egar d b y t he Pr. CIT. As per t he show cause not ice, the revisi onal co mmi ssi one r all eged t hat the Assessing Offi ce r has f ai led t o carr y out req uisi te veri ficat i on i n respect of c ash deposi ts i n ban k acc ount dur i ng the de mon et izat ion pe ri od a ggregat i ng t o Rs.36 l akh and also fail ed t o obj ecti vel y e nqui re int o r easons for fall in GP r at io a nd the cor rect ness of book resul ts. The sho w cause noti ce i ssue d i n t his r egar d t o t he assessee i s repr oduced her eunder: S h ow C a u s e N ot i c e u / s . 2 6 3 o f t h e I n c om e T ax A c t , 19 6 1 I T R f o r A . Y. 20 1 7- 1 8 w a s e -f i l e d o n 2 2 . 1 0 . 20 1 7 de c la r i n g t o t al i n c om e o f R s . 1 , 75 , 9 30 / - L at e r o n t h e c as e w a s s e l e c t e d f o r c o m p l e te s c r u t i ny u n d e r C A S S w it h r e as o n s " ab no r m al i nc r e a s e in c a s h de p os it s d u r i n g de m on e t i z at i o n p e r i o d a s c om p ar e d t o pr e - d e m o ne t i z a t i o n p e r i o d " . T he I TO , W a r d - 2 (3 )( 3 ), B u la n d s h ah r c o m p l e te d a s s e s s m e n t o r de r u/ s . 1 4 3 ( 3 ) o f t h e I . T . A c t , 1 96 1 , d a t e d 2 8 . 0 6 . 2 0 1 9 o n to t al i n c om e of R s . 1, 7 5 , 9 3 0/ - . 2 . F r o m pe r u s a l o f as s e s s m e n t r e c o r d, f o r t h e y e a r u nd e r c o ns i de r a t i on , f o ll o w i n g di s c r e p a nc i e s / e r r or s ha v e be e n n ot i c e d: - ( i ) O n p e r u s al o f r e p ly d a t e d 2 2. 0 4 . 2 0 19 i n r e s p e c t o f no t i c e i s s u e d b y A O d at e d 0 9 . 0 4. 2 0 19 , t he a s s e s s e e 's c o un s e l h as s u b m i t t e d r e pl y r e g a r d i n g c o r e i s s ue s c r ut i n y as un de r . - A s s e s s e e w a s r e qu i r e d to e x pl a i n t h e r e a s o n s r e ga r di ng c a s h de p o s i t i n b a n k ac c o un t i n d e m o ne t i z a t i on p e r i o d. In t h i s r e s p e c t m y s u b m i s s i o n i s t h at t h e g o v t . h as d e c l ar ed de m on e t i z at i o n c ur r e nc y fr om m i d n i g h t o f 0 8. 1 1 . 2 0 16 a n d al l t he ba n k s w e r e c lo s e d o n 0 9. 1 1 . 2 0 1 6 . A s s e s s e e wi t h d r aw R s . 3 6, 0 0 , 0 0 0/ - f r o m hi s P B a c c ou n t a s u n de r t o pa y a m o u nt t o t h e f ar m e r s f r o m w h om go od s w e r e p u r c h a s e d. O n 0 3. 1 1 . 20 1 6 R s . 1 8, 0 0 , 0 0 0/ - I.T.A. No.904/Del/2022 4 O n 0 7. 1 1 . 20 1 6 R s . 1 8, 0 0 , 0 0 0/ - R s . 3 6 , 0 0 , 0 0 0 / - O u t o f t h e a b o v e am o u nt as s e s s e e ha s de p o s i t e d R s . 3 5, 1 0 , 0 0 0/ - o n 1 1. 1 1. 2 0 1 6 t o s up p o r t t h e a b ov e c on t e nt i o n I am p r od u c i n g t h e b oo k s o f A / c s f or y our e x am in a t i o n / v e r i fi c a t i on . A O h a s ac c e p t e d t he r e p l y o f t h e a s s e s s e e w i t ho u t en qu i r i n g i n t o t h e a s s e s s e e 's c l a i m t h a t t he c a s h o f R s . 1 8 l ac s w i t h dr a w on 0 3 . 1 1 . 2 0 1 6 w e r e i n f ac t s pe n t by t h e as s e s s e e f o r th e pu r p o s e of h i s b u s i n e s s . T h e ab ov e n ot e d e n q ui r y w as a l l t he mo r e r e l e v an t i n v i e w of t h e f a c t t h a t th e a s s e s s e e ha d a l s o w i th d r aw n R s . 1 8 l a c s f r o m b a n k o n 0 7 . 1 1 . 2 0 1 6 . A s p e r t he c o m m o n p r u de n c e o f a b u s i ne s s m a n i t i s n o t p r o b a bl e t ha t t h e a s s e s s e e w ou ld w i t h d r aw a h u ge c as h of R s . 1 8 l ac s o n 0 7. 1 1 . 20 16 w h e n h e h as al r e ad y in p o s s e s s i o n o f R s . 18 l a c s w i t hd r a w n o n 0 3 . 1 1 . 2 0 16 . Th e A O ou g ht t o h a v e be e n m ad e e n qu i r y t o pi e r c e t he v e i l w h i c h s e e m s t o h av e c a m o uf l a ge d t he a bo v e no t e d t r a n s ac t i o ns . T he a bo v e n o t e d i n f e r e nc e of l a c k o f e n qu i r y i s f u r t h e r s u b s t a n t i a te d f r om t h e f a c t s t h at n o d e t a i l s o f n a m e a n d a d dr e s s / p ar t i c u l a r s o f t he s o c a l l e d f a r m e r s f o r w h o m t h e ab o v e no t e d m o ne y is c l a im e d to ha v e b e e n w i t hd r a w n fo r m a k i n g p a y m e nt t o t he m i s f ou n d pl a c ed on r e c or d . H ad t h e as s e s s e e 's c l ai m b e e n a g e nu i ne c l a i m , th e re w o ul d h av e b e e n s o m e s hr e d of e v i d e nc e f or h av i n g m a de s u c h dem a n d b y t he f a r m e r s o n t h e as s e s s e e . ( i i ) D u r i n g t he y e ar t h e G P o f t h e a s s e s s e e h as r e du c e d s ub s t an t i al l y at 2 . 7 1 % i n c o m p ar is on t o 6. 3 0 % i n t he A Y 2 0 1 5- 1 6 . T he N P h as al s o b e e n c om e d o w n t o 2 . 1 0 % fr o m 2 . 5 8 % in t h e A Y 2 0 15 -1 6. I n t he r e pl y t o j us t i f y th e l o w G P a nd N P t h e c o un s e l of t h e as s e s s e e h as s u b m i t t e d v id e d at e d 15 . 0 4. 2 01 9 as un de r : - " R e as o n s f o r th e l o w G P an d N P i s d u e t o t he f ac t th at t he na t u r e o f bu s i n e s s i s ar h a t w h i c h de p e nd s o n a gr ic ul t ur al pr od uc e . If a g r i c ul t u r al pr o d uc e i s m o r e t h an t h e su pp l y i s m o r e a n d i f t h e a gr i c u l t ur al pr o d uc e is l e s s t h a n th e s up pl y i s l e s s h e n c e m a r k e t p r i c e d e pe n d s o n s u pp l y b a s i s . My f ur th e r s u bm i s s i o n i s t ha t t he e nt i r e p ur c ha s e s a n d s al e s a r e v e r i f i ab l e f r o m t he b oo k s o f ac c o un t s w hi c h ar e p r od uc i ng f or y ou r v e r i f i c at i o n. ” It i s no t e d t h at n o s up p or t i n g e v i d e nc e s t o s u b s t an t i at e i t s r e p ly a r e e nc l o s e d. I t t r i t e l aw t ha t m o r e s ub m i s sio n s / c l a i m of t he a s s e s s e e a r e n o t e v i de n c e i n t o i t s e l f . T he s a m e ha s t o be s ub s t a nt i a t e d b y r e l e v an t a nd c o ge n t d oc u m e nt a ry e v id e n c e . H ow e v e r , i t a p p a r e n t t h at t h e A O ha s be en c ar r i e d aw a y b y m e r e s u b m i s s i o n o f t he a s s e s s e e w i t ho ut b ri ng i n g I.T.A. No.904/Del/2022 5 an y m a t e r i al o n r e c o r d t o v e r i f y t he s a m e . ( i i i ) O n p e r u s a l o f P &L A / c it i s no t e d t ha t t he ass e s s e e ha s c r e d i t e d t h e i nt e r e s t o n F D R 's R s . 1 , 8 7, 7 00 / -, w h i c h i s a s s e s s a b l e u n de r t he he a d i n c o m e f r o m o t h e r s ou r c e s. If t he i n t e r e s t o n F D R ' s R s . 1, 8 7 , 7 0 0/ - i s t ak e n aw ay f r o m P &L A / c t h e N e t P r of i t s h ow n R s . 1 , 75 , 9 25 / - w i l l c o m e in neg at i v e f i g ur e s . I n s u c h s it u a ti o n t he A O s h o ul d h av e e n q uir e d i n t o p u r c ha s e s , s a l e s an d e x pe n s e s c l ai m e d by t he as s e s se e i n i ts t r ad i ng a n d P &L A / c . N o s uc h e nq u i r y s e e m s t o h av e b e e n m ad e by t h e A O . Si n c e t he c a s e w a s s e l e c t e d f o r c o mp le t e s c r ut i n y A O s h ou l d h a v e in q ui r y a l l as p e c t s o f t h e c a s e i n v i g i l an t m a nn e r . Th u s A O f a i ls t o h i s d ut y . 3 . I n v i e w o f t h e ab o v e , t he a s s e s s m e n t o r de r p as s ed b y t h e IT O , W a r d- 2 (3 )( 3 ) , B u l a n ds ha hr i s e r r o n e o u s a nd p r e j ud i cia l t o t he i n t e r e s t o f r e v e n ue an d m a y b e c a nc e l l e d or m o d if i ed b y i n v o k i ng t h e pr ov i s i o n s of s e c t i o n 2 6 3 o f t he I nc o m e Ta x A c t, 1 9 6 1 . ” 5. The assessee f il ed it s response bef ore the Pr. CIT to the revisi onal act i on and obj ect ed to the exerci se of revisi onal jurisdi cti on. The Pr. CIT howeve r ul ti matel y set aside the assess ment or der and di rect ed t he Assessi ng Offi cer t o c onduct necessar y inquir ies on t he af oresai d poi nt s in t he case and f ra me fresh assessment or der in ter ms of t he dir ecti ons of t he revisi onal order. 6. Aggri eved, the as sessee has agit ated t he revi si onal order bef ore t he I TAT. 7. When t he mat t er was call ed for hear ing, t he l d. c ouns el for the assessee ma de vari ous sub mi ssions and p oint e d out that the assess ment or der is nei t her shown t o be e rron eous nor prejudicial to the i nterest of t he revenue. It was sub mi t ted wit h refer ence t o the paper book fi le d that necessar y i nqui ri es wer e specif ical l y car ri ed out on bot h the poi nts al l eged i n t he show cause not ice and t he Assessi ng Offi cer found t he e xpl anat ion of I.T.A. No.904/Del/2022 6 the assessee on s uch poi nt es t o be sat isfact or y. The Assessi ng Of fi cer t hus a ppl ied hi s mind t o t he issues i n questi on obj ecti vel y a nd f ound r at ional e i n t he expl anat ion offere d on beh al f of t he assessee. The l d. counsel al so sub mitte d t hat when a r easonabl e inq ui r y was ca rri ed out and a r easonabl e vie w has bee n ta ken t her e on, merel y because the Pr .CI T m a y have a di fferent opi ni on on t he deci si on maki ng pr ocess, that b y it sel f wi l l not be suff ic ient to i nvoke t he revisi onal po we r. The ld. cou nsel r eferre d to t he j udi ci al di ct a prevail ing in t hi s regar d f or such pr oposi t ion. The l d. counsel t hus pointe d out t hat the acti on o f t he Pr. CIT is whol l y unsust ai nabl e and does not meet the requir e me nt of Sect ion 263 of th e Act . 8. The l d. CIT -DR for t he Revenue on t he ot her hand support ed t he or der of t he Pr. CI T a nd cont ended t hat t he Assessi ng Offi ce r has me rel y acce pt ed the fact s as pla ced befor e hi m b y the assessee wi t hout pr obi ng int o t he fact s so pl aced. A me r e f ur ni shin g of det ai ls woul d t hus not me et t he r equi re ment of Expla nat i on- 2 t o Secti on 263 of t he Act. The Explanat i on- 2 has gi ve n qui et us to such l ine of ar gu me nt s on behalf of assessee. The l d. CI T-DR t hus s ub mi tt ed t hat no i nter fer ence wi t h the or der of the Pr. CIT i s cal led for . 9. We have car eful l y consi dered t he ri val s ub mi ssions and gone t hr ough the assess ment or der as well as the revisi onal or der and per us ed t he mat er ial avai l abl e on recor d. The jurisdi cti on assu med b y t he Pr. CI T under Secti on 263 of the Act is under chal lenge ha vi ng regar d t o t he f acts as broadl y note d abo ve. I.T.A. No.904/Del/2022 7 9. 1 As regar ds t he enqui r y on cash de posit s, it is t he case of the assessee t hat t he assessee wi thdr ew Rs. 18 l akh on 03. 11. 2016 and a nother Rs.18 l akh on 07. 11. 2016 from hi s bank account i n an ant i ci pat io n t o ma ke pa yment t o the fa r me rs f r o m wh o m purchase of cer tain goods were in cont e mplat ion. O ut of the above a mount as avai la bl e, the assessee has deposi ted Rs.35,1 0, 000/ - on 11.11.2016, i. e., a few da ys aft er wi thdrawal whic h fell in the de monet i zati on pe ri od. The assessee cont ends that the case was sel ected for scr ut in y i n w hi ch t his i ssue was the central poi nt of i nqui r y. T he assessee f il ed t he det ai ls as wel l as t he books of acc ount t o suppor t t he sourc e of cas h dep osit s w hich i s out of i mmedi at e wi t hdrawals. T he f acts of wi t hdrawal i mme di at el y bef ore deposi t i tself speaks the sourc e of cas h deposi t and t he obser vat i on of t he Pr. CI T that Assessi ng Of fi cer ought t o have ma de i nquir y t o pi er ce the veil on the account and t hat such deposi ts seem to have been camoufl aged, is f arf et ched a nd whol l y pre mise d on sur mises and conj ect ures. It i s a matt er of r ecor d that an i nqui r y was dul y car r ied out and books of acc ount were exa mi ned. B e as it ma y, source of cas h dep osit i n t he i nst ant case i s ha vi ng di rect rel at ionshi p wi th t he i mmedi ate wi th dr awal before such deposit s and doubti ng t he gen ui neness of such deposi t is wi t hout an y s hre d of evi denc e adv erse t o t he assessee i s unco mpr ehensi ve t o the cor e. 9. 2 On appr ai sal of fact s on recor ds, we f ind pal pabl e mer it i n such plea put f or t h on behal f of t he assessee. The f actu m of wi t hdrawal i mme diatel y pri or t o deposi t pr ovi des reasonabl e basi s to t he Assessing Off icer i n his quasi- judicial capaci t y t o accept the co nte nti ons i n t he cour se of t he assessment . Such I.T.A. No.904/Del/2022 8 acti on of the Assessing Offi cer can not be regard ed to be wholl y er roneous i n s uch f act sit uati on t o i nvi t e t he revisi onal pr ocee din gs. The acti on of t he P r. CIT rat her appea rs to be i n t he real m of sur mi ses and conj ect ur es wi thout a n y co mpel li ng evi de nce t o assert a l ack of bona fi des in the expl anati on offere d. The acti on of the Pr. CI T i s thus i nco mpre hensi bl e and thus cannot be c ount ena nce d in t he absence of an y ‘er ror ’ per se in t he assess me nt. 9. 3 We no w advert t o second i ssue t ow ards reas ons fo r f al li ng GP rati o. As poi nt ed out on behalf of t he assessee, a speci fi c not ice u nder Se ct i on 142( 1) w as i ssued seeki ng detai ls indicat i ng the sales, GP rati o, NP r at io al ong wit h c o mparat i ve fi gur es and also t he reason f or incr ease/ decrease in t he GP rati o and NP r at io. It is de monstr at ed on behal f of the assessee that i n response t o t he i nqui r y, t he assessee has sub mi tt ed vi de l et ter dat ed 05. 04. 2019 pr ovi di ng ex planat i on f or fall i ng i n t he pr of it abi l it y rati o whi c h r eads as under: “ R e a s o n s f or t he l o w G P an d N P i s d ue t o t he f a c t th a t th e n at u r e o f b u s i ne s s i s a r ha t w h i c h d e pe n d s on ag r i c u lt u r a l pr od uc e . I f a g r i c ul t u r a l p r o du c e i s m o r e t h a n t h e s u p pl y i s m ore a nd if t h e a g r i c ul t u r a l p r o du c e i s l e s s t ha n t h e s u pp l y is le ss he n c e m a r k e t p r i c e de p e n ds o n s u p pl y b as i s . M y f u r t he r s u b m i s s i on i s t h at t h e e n t i r e p ur c h as e s a n d s a le s a r e v e r i f i a bl e f r o m t h e bo ok s of a c c ou nt s w h i c h a r e p r o d u c in g f or y o u r v e r i f i c a t i o n . ” I t was poi nted out t hat t he assessee deals i n f ood grains, catt l e feeds and pet t y i te ms et c i n his ow n account as Kuccha Ar hti a and al so on commi ssi on basi s. 9. 4 Fro m t he case r ecor ds, it appear s t hat the Assessi ng Of fi cer has ma de speci fi c i nqui r y and t he assessee has fi led I.T.A. No.904/Del/2022 9 specif ic ans wers in response t o t he fall in t he prof it abi l it y. A co mpar at ive c har t for Assess ment Year 2015- 16; 2016-17 a nd 2017- 18 were al so pr ovi ded t o t he Assessing Of fi cer. The reasons for l ow G P and NP were also provi ded. The openi n g a nd cl osing st ock and al l other det ai ls along wi t h books of account were produce d. It is common knowl edge t hat t he business of Ar hat in f ood grains etc tot all y depends upon agri cul t ural pr oduce w hich is in t ur n over whel mi ngl y depe nds upon vagari es of cli mate var iabi l i t y and also de mand and suppl y. T he mar gi n of pr of it s, at ti me s, vari es drast i call y and co mparison of GP, NP rati o qua othe r fi nancial ye ars ma y not nec essar il y be str ictl y co mpar abl e unli ke othe r busi ness vent ures. The Assessi ng Of fi cer, i n it s wi sdo m, aft er veri f icat i on of t he recor ds has agr ee d wit h t he expla nat io n off ere d t owar ds f al l in the rat io. The substi tuti on of opi ni on of Pr . CI T in t he ci rcu msta nces i n t he na me of i nade quac y i n i nqui r y on the poi nt i s t hus a far cr y. T he al legati on of t he Pr. CIT that t he ac ti on of the Assessing Of fi cer on the poi nt i s erroneous appears to be qui te holl ow. 10. The super visor y j uri sdict ion exerci sed u nder Secti on 263 of t he Act i s t hus not sustainabl e i n l aw. Conse quentl y, t he revisi onal order i s set asi de and qua shed. 11. I n t he resul t, t he appeal of t he assessee is all owed. Order pronounced in the open Court on 30/08/2023 Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] VICE PRESIDENT ACCOUNTANT MEMBER DATED: /08/2023 Prabhat